Enterprise-wide risk management

May 2002 Security Services & Risk Management

Effective risk assessment and management, implemented across the complete risk spectrum, needs to be a more integral component of all businesses. The previous focus on insurable-type risk exposures by most companies has given way to a more integrated approach to company risk management with a move towards business wide risk assessment forming its basis. Companies are now considering all risks in their business, not just asset-based ones, when formulating their risk management strategies.

"The enterprise-wide risk management approach holds that a risk is a risk, no matter what the type. All risks need to be understood and effectively managed in a consistent manner," says Paul Skivington, director, Alexander Forbes Business Risk Solutions.

This approach requires the assistance of multidisciplinary teams of specialists to ensure complete and accurate risk assessment. Although risk management may be centrally monitored, all aspects of the business should be involved in the risk assessment and management process (eg information technology, treasury and banking, internal audit, etc). As risks are often not confined to only one business area, a collective awareness and sound approach to possible problem situations is essential.

The Turnbull Report (UK) promoted this business wide approach to corporate risk management and South Africa is now following suit. "The King Report will stipulate that publicly listed companies report on enterprise-wide risk exposures in their annual reports. Shareholders now require information on existing and possible company-wide risk exposures and how these are being managed. Enterprise-wide risk management is therefore becoming increasingly essential to the achievement of business objectives," says Skivington.

"Ensuring that the risks associated with your existing and envisioned business are properly assessed could go a long way to ensuring both sound business decisions and stakeholder confidence. Companies should all be utilising enterprise-wide risk management strategies with a view to mitigating possible business risk exposures," concludes Skivington.





Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Understanding the power of digital identity
Access Control & Identity Management Security Services & Risk Management Financial (Industry)
The way we perceive business flourishing is undergoing a paradigm shift, as digital identity and consumer consent redefine the dynamics of transactions, says Shanaaz Trethewey.

Read more...
What you can expect from digital identity in 2024
Access Control & Identity Management Security Services & Risk Management
As biometric identity becomes a central tenet in secure access to finance, government, telecommunications, healthcare services and more, 2024 is expected to be a year where biometrics evolve and important regulatory conversations occur.

Read more...
More than just a criminal record check
iFacts Security Services & Risk Management
When it comes to human-related risks, organisations and their most senior leaders focus on a narrow set of workforce risks, the potential risks that human workers pose to the business.

Read more...
Tech developments lead hologram growth in 2024
News & Events Security Services & Risk Management
Micro-lenses, micro-mirrors and plasmonics are among the rapidly-emerging optical devices that have evolved on the back of holographic and diffractive technologies, and are seen as part of the natural evolution of optical science by R&D teams.

Read more...
Are you leaving money on the table?
Editor's Choice Security Services & Risk Management
How many customers have you helped since starting your business? Where does most of your new business come from? If the answer is not from your database’s existing customers, you might have a problem.

Read more...
The business value of ChatGPT
Security Services & Risk Management Risk Management & Resilience
Transparency, policy and integrity. It is critical for organisations to have a line of sight into processes and procedures that clearly define employee use cases when it comes to ChatGPT, says Lizaan Lewis, Head of the Legal Department at Altron Systems Integration.

Read more...
BMS for smaller businesses
Security Services & Risk Management Products & Solutions Risk Management & Resilience
Small businesses can also benefit from tailored energy management solutions just like large corporations. Effective energy management is essential for more sustainable and efficient operations.

Read more...
Kidnapping for ransom
News & Events Security Services & Risk Management Risk Management & Resilience
There has been an 8,6% increase in reported kidnapping cases in South Africa compared to last year, with 3 854 cases reported between April and June this year, leaving ordinary South Africans increasingly vulnerable.

Read more...
The difference between a SOP and a SOP
Residential Estate (Industry) Integrated Solutions Security Services & Risk Management Risk Management & Resilience
SOPs are a touchy issue that need careful attention and automation to ensure they deliver the desired security results. Beyond design and automation, implementation is the ultimate road to success.

Read more...
Scoping out potential estates
Alwinco Security Services & Risk Management
When an intruder surveys a residential estate of 200 houses, they see at least 200 cars, 400 cell phones, 400 computers, 200 flat screen TVs, 600 bank cards, and various other items of value.

Read more...