The Only Thing Certain in Today’s Market is Uncertainty
Today’s organizations are under an unprecedented amount of pressure to improve performance, stay lean and manage shareholder value. In such a volatile business environment, our instincts scream to play it safe and avoid risk. But, risk is inherent in business and success. Ignoring risk or managing it in a fragmented way leads to under-informed decisions that can ultimately affect profitability.
“Our point of view is that companies with more mature risk management practices outperform their peers financially.”
Ernst & Young
Turning Risk into Results, March 2012
Most organizations recognize both the challenge and the opportunity well managed risk presents. Yet, despite major investments to improve risk management capabilities, critical exposures still exist. Executive-level visibility to risk continues to be obscured by organizational silos and outdated or inefficient systems leaving a performance gap between an organization’s expectations for risk management and what is actually achieved.
Most executives still feel their companies have a long way to go in building an effective, risk aware culture according to the Harvard Business Review Analytic Services study.
Now, more than ever, companies must embrace risk to understand and manage their business to create a competitive advantage and a springboard to growth.