Risks generally take many forms across many businesses. There are catastrophic characteristics and there are routine risks that many businesses and organizations encounter. There are risks that are well known and well anticipated while others are generally unknown. Perhaps the only certainty for most businesses in an increasingly competitive business environment is that there is a very fast rate of change in the business landscape. There are numerous factors that are contributing to this fast rate of change. These include new competitive forces, technological forces, the complexity of doing business, regulatory scrutiny for these businesses and even an increased reliance on third parties for various services and processes. Thanks to these complexities confronting businesses, it is important that they invest in enterprise risk management services that will help them in managing risk.
Organizations that invest in enterprise risk management are able to develop risk resilience. They are able to carry out an objective assessment of their risk management capabilities and also evaluate the organizational culture when it comes to risk management. Organizations that implement sustainable enterprise risk management practices generally see greater reward and performance in their business.
Exposing Risks in an Organization
The main challenge that many organizations face is how they can structure their enterprise risk management programs in order to expose the threats that the organization faces and which it has not even considered or identified. See more at Bryan Whitefield
Some of the risks that will pose the most serious threats to many organizations are not even known to the senior management staff that makes key decisions in the company. Clues are always there at the front lines of the organizations, in the low level or mid-level employee base. The risk factors that may not be familiar to those at the top are quite familiar to those who are at the bottom. Employees generally encounter these risks on a day-to-day basis but due to communication failures, these issues are not passed up to the senior management executives. The risks are not taken up to the appropriate level where some concrete action could be taken.