Enterprise-wide risk management helps companies identify, evaluate and prioritize uncertainties they must manage to create, optimize and protect their unique portfolio of strategic assets. Companies must balance the need to respond to current global economic issues with the reality that markets will continue to change and new opportunities will emerge. Companies should not forget the importance of forward-looking risk assessments as they evaluate their strategies, business models and assumptions.
We help companies identify the strategic assets vulnerable to exposures to uncertainties, and evaluate the primary sources of uncertainty affecting those assets, including financial and physical assets, customer assets (customer portfolio, channels), employee/supplier assets and organizational assets (distinctive brands, innovative processes and information systems).
When You Need These Services
- Decreased revenue growth, margins, profits
- Geographic diversity, decentralized management structure, diversified product portfolio
- Exposure to surprises and unexpected losses
- Significant reliance on viability of customers, employees, suppliers and other stakeholders
- Substantial changes in operating capabilities, e.g. staff reductions, other “right” sizing, etc.
- Aggressive stakeholders heightened interest in Board governance and oversight
- Limited ability to articulate critical business risks and organizational capabilities to effectively manage them
- Limited change readiness capabilities
Benefits of the Services
- Balance risk taking activities and opportunity seeking behaviors during challenging times of rapid change
- Identify gaps between the actual risks taken that expose strategic assets and the desired risk exposure levels so that proactive actions can be taken to effectively manage and minimize those gaps
- Identify improvement opportunities, for example, to:
- Optimize and protect enterprise value by more effectively managing strategic asset risks
- Enable more informed, balanced choices of alternative business opportunities
- Improve organizational controls
- Improve governance by establishing responsibility, authority and accountability for managing critical business risks at their source
- Better align capabilities with risk management strategy and policy
- Improve ability to articulate risk profile and risk management capabilities
- Improve transparency to increase confidence of investors, customers, employees, suppliers and other stakeholders