Transforming risks into opportunities through:
Getting Close To The Edge Can Be Daunting But The View Is Better
- Independent Risk Assessments
- COSO’s ERM – Integrated Framework
- Data Assessments, including Cybersecurity
- Information Flows & Decision Making Process
- Integration to align people, process, & IT
Know Your Risks and Opportunities
Opportunities are potential actions to best achieve objectives, including protecting and growing shareholder value. Risks are simply the possibility that events will occur that negatively impact achieving objectives. It is important to know a company’s risks and opportunities to decide how to best act. Coordinating this effort between strategic, operational, reporting and compliance objectives can be a daunting task. The board and management team alike are responsible for ensuring an efficient and effective company-wide risk response. As part of the risk process, organizations must understand and address the risks from both internal and external sources. Implementing a robust risk management program, that includes a strong fraud risk management component, will ensure that organizational vulnerabilities are proactively identified and addressed.
The Enterprise Risk Management (ERM) framework from the Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a leading risk framework that we utilize. This framework consists of the following eight components:
Successfully executing an ERM process allows companies to:
- Internal Environment – Encompasses the tone of an organization, and sets the basis for how risk is viewed and addressed by an entity’s people, including risk management philosophy and risk appetite, integrity and ethical values, and the environment in which they operate.
- Objective Setting – Ensures that management has a process to set objectives and that the chosen objectives support and align with the entity’s mission and are consistent with its risk appetite.
- Event Identification – Internal and external events affecting achievement of an entity’s objectives must be identified, distinguishing between risks and opportunities.
- Risk Assessment – Risks are analyzed, considering likelihood and impact, as a basis for determining how they should be managed.
- Risk Response – Management selects risk responses – avoiding, accepting, reducing, or sharing risk – developing a set of actions to align risks with the entity’s risk tolerances and risk appetite.
- Control Activities – Policies and procedures are established and implemented to help ensure the risk responses are effectively carried out.
- Information and Communication – Relevant information is identified, captured, and communicated in a form and timeframe that enable people to carry out their responsibilities.
- Monitoring – ERM is monitored and modifications made as necessary.
Our risk assessment knowledge and tools can help you unlock previously unknown opportunities to protect and grow shareholder value. Contact us now to learn how to start.
- Confirm risks and opportunities to support key decisions
- Enable faster risk response decisions
- Minimize operational surprises and losses
- Identify and manage cross-enterprise risks
- Develop integrated responses to multiple risks
- Improve deployment of capital
Risks & Opportunities
Download your copy today.
Until you spread your wings you’ll have no idea how far you can fly