Turning risk into results: How leading companies use risk management to fuel better performance
From Enron and WorldCom to the more recent financial crisis, events of the last decade have fundamentally shifted how organizations think about risk. Companies around the world have made substantial investments in personnel, processes and technology to help mitigate and control business risk. Historically, these risk investments have focused primarily on financial controls and regulatory compliance.
However, these investments have often not addressed more strategic business risk areas. As a result, senior executives may not perceive risk management as strategic to the enterprise. Senior executives also may not have sufficient confidence in their ability to identify and address the risks that could impact the financial performance − or even the viability — of their organization.
A strategic question presents itself: “Do organizations with more mature risk management practices outperform their peers financially?”
See Turning risk into results: How leading companies use risk management to fuel better performance by Ernst & Young.
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Your enterprise approach to business risk and its influence on corporate governance will be profoundly influenced by by David Kaye and Julia Graham in their landmark book, A Risk Management Approach to Business Continuity: Aligning Business Continuity with Corporate Governance.
Tags: enterprise risk management, financial risk management, Risk Management, risk mitigation
