PLAYING IT SAFE TO WIN: HOW SMART RISK MANAGEMENT BOOSTS BUSINESS GROWTH
Whether it is in boardrooms, annual reports or daily stand-ups, the word ‘risk’ often carries a negative connotation. Entrepreneurs and executives would imagine worst-case scenarios such as financial losses, customer trust damage or operational disruptions, and avoid the ‘second line’ ivory tower like the plague. But what if risk, when managed smartly, could become a catalyst for growth rather than the barrier that everyone complains about? Increasingly, forward-thinking companies are discovering that robust risk management and compliance programmes are not just about avoiding pitfalls; rather, they are about unlocking opportunities, building trust and gaining a competitive edge. When reframing risk management as a strategic tool that shows where a company can unlock, protect or even create business value, instead of a defensive necessity that saves it from doomsday, it can find pragmatic ways to ‘play it safe’ in the company’s quest to win.
This is not just theory. Whether it is about catalysing customer loyalty or streamlining operations, smart, well-leveraged risk management is proving its worth in real-world applications. Some companies even made the choice to leverage their compliance efforts to stand out in crowded markets. In this article, we will explore how this shift is happening, dive into real examples of businesses turning regulations into trust-building wins and outline practical ways to transform risk assessments into super-differentiators that fuel growth. Let us unpack how playing it safe can mean playing to win.
Trust as a competitive advantage
Historically, compliance has been viewed as a cost centre – a necessary evil to dodge fines or legal trouble. That said, the narrative is changing. Banks, for instance, are rethinking compliance as a way to differentiate themselves, according to a 2023 McKinsey report.
Apr-Jun 2025 Issue
General Bank of Canada