Mastering Risk Management

RISK IDENTIFICATION

Identifying risks (and their accompanying mitigating controls) should be a part of the firm’s day-to-day business life and processes. Risk identification is a normal and natural part of being in business and should not be regarded as something that is done only once every six months or whenever a full risk assessment is performed.

Using the firm’s objectives to identify risks

The use of a firm’s objectives or goals to identify its strategic risks is the most natural place to start. The simple problem of “What will prevent me from meeting my objectives?” is one of the questions that the management asks itself many times during the year. By listing those things that will derail the objectives and assessing how good the firm ...