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.
Making intelligent and informed decisions is intrinsic to effective risk management. Many times risk management decisions are centered around loss events and the negative consequences that might eventuate. The positive aspects of risk taking are hardly noticeable.
Most businesses are under extreme pressure to reduce costs while improving product quality and customer service. Developments in the global economy such as globalisation and advances in new technology have changed the traditional balance between customer and supplier.
