With only 1/3 of companies implementing ERM processes, Litrivis CPA can help you open the lines of communication in order to mitigate the risks in your company.
Form a comprehensive risk management strategy
The 2022 Global State of Enterprise Risk Oversight report found that although a majority of respondents believe the number and complexity of risks have increased over the past five years, only about a third have complete enterprise risk management (ERM) processes in place.
These findings point to a dangerous planning gap for many organizations around the world.
If your company doesn’t have a comprehensive ERM plan in place yet, creating one or enhancing an existing plan should be a top priority.
integrate risk management with strategic planning initiatives, something most organizations struggle to achieve, according to the report.
In addition to minimizing the impact of a crisis on your business, risk management processes have the potential to offer valuable insights about which initiatives are most likely to pay off and which might not be worth the risk.
2. Include diverse viewpoints in the planning process
Make sure you’re hearing from a diverse set of viewpoints throughout the planning process
Open lines of communication with all key stakeholders
including customers
contractors
suppliers
community members
employees at all levels.
3. Keep tabs on emerging risks
Digitalization of society and emerging technologies
Public distrust in business
Trade tensions
Economic and social inequalities
The changing regulatory environment
4. Don’t rely on numbers alone
Relying on numbers alone means ignoring unmeasurable, but very real, factors that contribute to the situation.
Instead of presenting financial reports as static and final documents, use them as jumping off points for cross-functional discussion and productive debate
Focus on asking questions rather than providing answers.
To read more about the importance of ERM see what AICPA had to say:
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