Managing organizational risk in tough times means taking a holistic view. This requires an integrated cross-departmental framework of controls, checks and balances.
Organizations can no longer afford to treat risk in silos, in separate departmental level initiatives. Risk management needs to be an integrated, enterprise wide approach, keeping focus on multiple key indicators which show early warning signs of potential business problems, with pre-planned strategies to address potential risks.
Ongoing board level attention is required, as risk management is no longer a purely compliance issue. Globally, organizations are facing uncertain times, and management of risk at the highest level is critical. Only with a systematic, but strategically led approach to risk management, can organizations of today be more assured of avoiding, or better managing, the pitfalls of difficult market conditions.