Something to Consider July 2019 2
Risk management is undergoing a significant and rapid evolution. We are moving from a world which has been dominated by policy and control, driven in large part by the compliance regimes of the last decade, towards a broader, more holistic approach to understanding and managing risk, threat and opportunity in the business.
In today’s business and social environment, board members and management must aspire to achieve more than their standard oversight obligations. They must go further and see the quality of enterprise risk management (ERM) as a cornerstone of value in the business. There is still too much consideration of risk management as an isolated topic or a ‘compliance’ issue rather than seeing transparency of information and decision making a central plank of management itself.
Strategic risk management, as a key stream of ERM, is about ensuring that the ‘promise’ of a strategy is not undermined by scenarios that can derail the future of an enterprise.
Our article of the week discusses the driving forces behind the evolution as well as key ways to manage strategic risk. You can read it here