Finance transformation is critical if you want to keep up with the evolving ideas and strategies of today’s business landscape. It will revolutionise processes and systems within organisations to make them more effective, and more profitable. Cloud solutions and Software as a Service (SaaS) is one key area offering transformative results.
Barings Bank rogue trader (1995), LTCM hedge fund failure (1998), Enron bankruptcy (2001), Parmalat accounting fraud (2003), AIG accounting scandal (2005), Lehman Brothers bankruptcy(2008), Bernie Madoff ponzi scheme (2008), Toyota unintended acceleration recalls (2009) , BP Deepwater Horizon oil spill (2010), Fukushima tsunami and nuclear accident (2011), Libor-fixing scandal (2012), JP Morgan $14.6 billion regulatory fines (2013), Rana Plaza collapse (2013), General Motors recalls (2014), Wells Fargo mortgage fees (2017) and Boeing 737 Max crashes (2018 and 2019) are a few examples of risk management failures we have witnessed over the years.
Risks and opportunities are prevalent in today’s global economy. Organizations are constantly getting exposed to material risks (financial, strategic, operational, geopolitical, environmental, legal, compliance, etc.) yet the majority are not prepared for them.
Risk management is an integral part of any organization. Whether be it public sector or private sector entity, large or small business, non-profit seeking or profit-seeking organization; risks still exist and need to be dealt with. Every decision or choice we make, either presents a risk or an opportunity for us. For example, as a small business wanting to improve customer service by answering queries as promptly as you can, you might choose to install a 24 hours Telephone System that answers customer queries after office hours as your solution.
Enterprise Risk Management (ERM) is all about the organization identifying and managing the significant risks to which it is exposed to. Failure to identify and manage these risks can have devastating effects on business performance and the long-term value of the organization.
