Strategic risks can do serious damage to an organization, very quickly. These risks can compromise supply chains, facilities, technology, talent, capital, reputation, and basic drivers of value. Yet they fall outside most enterprise risk management (ERM) programs and are difficult to quantify, monitor, and manage. To address these risks, leaders need new perspectives and approaches. They need tools for scanning the environment, tracking developments, and visualizing risk data. And they need to prepare effective responses, because responsibility for strategic risks resides at the C-suite and board levels.
Risk transformation can enable a company to elevate risk management from a functional capability to an enterprise responsibility that permeates the entire organization. When that happens, risk is no longer seen as the domain of only the risk management function. Instead, every business, function, and individual becomes accountable for and capable of addressing the risks within their purview. This enables the organization to more effectively implement strategies and achieve goals while addressing risks and complying with regulations. Lire la suite