Implementing Enterprise-Wide Risk Reduction across Operational and Financial Processes

摘要

As we look into the economic abyss that was created in the aftermath of the stock market dive in late 2008 and early 2009, it's pretty easy to realize that risk management is a vital core competency in any ongoing business. However, what isn't as easy to identify is that scope of business processes impacted by risk management is changing rather dramatically. Risk management is becoming much more than compliance, internal controls, audits, incident management and insurance. In today's sense, risk management is any organized activity designed to reduce the uncertainty of a company achieving its operational objectives. Thus a potential risk is created by any exception or deviation in a process that could impact a company's ability to meet its goals. Given that broader view of risk, it's more apparent why strictly staying in compliance, having good internal controls and buying enough insurance coverage are no longer sufficient.