Why Risk Management?
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All businesses spend money on risk management, regardless of whether or not it is called risk management. But if your organisation is not engaged in proactively managing and identifying risks then that spending will be poorly focused and in all likelihood money wasted on ineffective risk controls.Worse still, it is very likely you will have unidentified and therefore unmanaged risks!
When asked about business risk most people typically think of risks relating to hazards. Examples might range from fire or flood through to cyber security, data breaches, theft of intellectual property and reputational risks. Whilst these are important and significant risks, these negative risks only form part of the Enterprise Risk management (ERM) picture.
In the fast changing and competitive business environment, no business can afford to sit still.
To survive companies need to adapt to and seize strategic opportunities and manage the risks associated with them. Businesses that are afraid to take risks rarely survive long term.
Enterprise risk management is about considering the spectrum of risks that an organisation may face from strategic risks and project risks through to operational risks and compliance. Aligning these risks to the strategic objectives and goals of the business and prioritising.
Arlington Risk Consulting can help you find your way with Enterprise Risk Management.