Why Risk Management IS Important
In an ever-changing and dynamic business environment, risk can quickly create uncertainty.
Today’s business is more focused on identifying risks, evaluating these risks, and putting a plan in place to manage them before they have an impact on the business.
The ability to identify and manage risk helps companies to act more confidently and quickly on future business strategies and decisions.
“Reputation risk remains an issue, given its ability to very quickly erode or at least negatively affect one’s reputation. This risk is amplified by the presence of social media, which allows effective real-time messaging on a global scale. Companies need to have clear plans prepared on how to deal with a reputation impacting event and then exercise them regularly.” Eamonn Cunningham: Chief Risk Officer - Westfield Risk Management
Risk can be caused by internal and external sources. The external risks are those that are not in direct control of the management. These include political issues, exchange rates, interest rates, and so on. Internal risks, on the other hand, include non-compliance or information breaches and operational risk among others.
Risk management is a crucial business program to ensure that the business can continue to plan their objectives in the short and also longer term.
Risk Management has become SO IMPORTANT that some organisations have created internal departments and roles tasked to identify risks, come up with strategies to safeguard against these risks, to execute these strategies, and to motivate all members of the company to cooperate in these strategies.
For companies not large enough to support their own risk management team, Risk Management Agencies like Ascentium now exist to provide services for Risk Assessment, Risk Management, Risk Mitigation, and ongoing Risk Advisory.
Risk Management Agencies provide a range of services such as audits, controls, reports and frameworks. However, this is only the visible part of the iceberg. Quality risk management involves a complex infrastructure of systems, practical methods, and people implemented in a firm to identify, assess and limit or select risks.
To understand the types of risks that are associated with your type of company, please book one of our complementary risk assessment meetings by contacting us on info@ascentium.com.au
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