Chapter 2. Risky Business: Turning Risks into Opportunities
Risk is a fact of life. No matter what your plans are, whether it's crossing the street, going on vacation, or buying a subsidiary — risk is inevitably involved. However, not all risk is bad. Effective risk management can allow you to protect the value that you've worked to build within your organization and can also allow you to create new value by identifying opportunities to build growth, increase competitive advantage, and drive efficiencies throughout your organization.
In this chapter, we talk about risk in a new way and discuss how you can use risk management to both protect value and create new value. This new approach to risk management enables you to embed a strategic risk methodology across your enterprise, at all levels, from operational management, to line of business owners, risk managers, and senior executives and directors. This approach to risk management can help enhance performance and innovation for new products, new processes, and new strategies and can allow risk to become an additional driver of business change.
Discovering Enterprise Risk Management
Enterprise risk management provides a framework for your business to identify your risks and decide which risks are likely to happen and what the associated impact will be for your business. By managing this type of information, you can better protect the value that you have created across your business because you are more aligned with your risks and can ...