Managing Risk During the Crisis
The environment we operate in, is constantly changing.
Businesses are being impacted by political, economic, social, technological, legal and environmental factors, and need to navigate those changes to stay afloat and keep sailing.
Consequently, organisations are surrounded by uncertainty which poses threats to success but offers also an opportunity for increasing success. The current scenario which is primarily dominated by effects emanating from the Covid-19 pandemic, requires a direct and methodical focus.
The business environment should be monitored continuously. Organisations need to be focused in order to respond effectively to opportunities and threats and their evolving risk profile. They need to establish mechanisms that allow the monitoring of the business and risk environment in real time. In this respect, business risk assessments are aimed at helping organizations in monitoring their environments and in establishing their risk profiles.
Focusing on the management of risk is the key to making organisations successful in delivering their objectives while protecting the interests of their stakeholders.
While acknowledging the importance organisations give towards making sure to keep their compliance and internal controls under review, we believe that organisations which regularly review their risk management perspective stand above the rest. When applied well and embedded in the organisation’s culture, risk management not only gives assurance on the organisation’s future survival, it helps them sail through stormy waters faster and stronger.
By managing risk, internal control and governance successfully, businesses not only survive, but improve their decision-making process, reduce their level of uncertainty, and increase their confidence in achieving their desired outcomes.
BDO's Risk Advisory Services offer global assurance and advisory services over the quality of internal control, risk and governance frameworks.
The Risk Advisory team can help organisations in designing and implementing practical and cost-effective enterprise risk management solutions.
The fundamental idea behind introducing the concept of enterprise risk management (ERM) is to move away from risk management as the separate management of individual risks. ERM takes a unifying, broader and more integrated approach. An organisation can look at all the risks that it faces. With the ERM approach, an organisation can identify two or more risks which can have an impact on the same activity, team or objective, for example. ERM allows an organisation to have an overview of all the risks that it faces leading to coordinated actions in managing these risks.
The ERM concept is not a one size fits all. It is for this reason that we can support organisations by helping them tailor and design a framework that meets their governance requirements, while remaining practical and efficient as well as making risk reporting more effective.
BDO is here to Help!
Read More: Is Risk Management around COVID-19 possible?
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