ENTERPRISE RISK MANAGEMENT
In today’s volatile, uncertain, complex and ambiguous world, with many disruptive external factors, unforeseeable events and increasing geopolitical tensions, the risk environment for companies can change from one day to the next. Risk can have an impact on a company’s strategy, its operational value chain, research and development (R&D), production, marketing or sales. In this rapidly changing business environment, effective enterprise risk management is essential to building resilience as well as to providing and securing sustained, long-term value.
To deal with these challenges, it is of utmost importance for every enterprise risk framework to help the organisation to optimise identification of risks for full transparency, to execute bold actions to deal with risks and reduce them in a timely manner, and to take courageous decisions to knowingly accept risks to grow the business and gain opportunities.
A balanced risk mindset forms the basis of sound decision making for sustainable business development and innovation. Resilience in challenging times is directly related to the ability to detect risks early and to mitigate, monitor and remediate them. At a time when business threats are becoming more frequent, it is essential that a united approach between risk management, business continuity and crisis management can be ensured and seamlessly executed. Hence, the closer these functions work together, the better a company’s overall risk management and resilience.
With respect to the collaboration of functions, there are some other important key success factors for a successful enterprise risk management framework.
Oct-Dec 2021 Issue
Novartis International AG