MANAGING THE CERTAINTY OF UNCERTAINTY – TURNING RISK INTO OPPORTUNITY
In the face of pandemics, cyber attacks and geopolitical upheaval, legal, risk and compliance professionals have an incredible chance to turn uncertainty into opportunity. With change as the only constant, forward-thinking companies are leaning into these individuals to help build resiliency, strengthen enterprise-wide relationships, improve communication channels and encourage growth.
This fundamental shift in mindset has given rise to strategic risk professionals who identify potential regulatory and commercial risks and proactively offer solutions and commercial opportunities.
Effective risk management requires regulatory expertise and deep knowledge of industry and business operations. Risk professionals are in a position to add real value by proactively addressing emerging issues such as supply chain diversification outside of China due to the deteriorating US/China relationship, or the appropriate use of generative artificial intelligence (GenAI) for business operations and turning them into strategic growth opportunities.
Regulatory tailwinds
This approach is entirely consistent and endorsed by recent regulatory guidance. As noted in the US Department of Justice’s, Evaluation of Corporate Compliance Programs, March 2023 Update, the starting point of the evaluation for determining whether a company has a well-designed and effective compliance programme is to: “Understand the company’s business from a commercial perspective, how the company has identified, assessed and defined its risk profile, and the degree to which the program devotes appropriate scrutiny and resources to the spectrum of risks.”
Oct-Dec 2023 Issue
American Express Global Business Travel