Financial risks have probably never been more acute. Capital reserves, credit portfolios, investment policies and capital and debt profiles all demand constant scrutiny to adequately manage and mitigate risk. Companies should also be vigilant about risks associated with their suppliers. A counterparty who defaults on a contract or whose business collapses can have serious financial and reputational ramifications for related parties.
Fraud risks also can increase when cash is tight. Some employees may become more opportunistic and external hackers more resourceful. When these individuals find weak areas in security they are more likely to strike.
Many companies are more likely to pursue litigation for losses that might incur during more prosperous times, and disputes may develop if organizations blame other parties for inappropriate or negligent behavior.
Today's demanding environment force companies to build up skills and competencies while in the meantime they tend to reshape their structure to concentrate more on core competencies.
Strengthen your business with KPMG's Internal Audit, Risk and Compliance Services, Forensic, Financial Risk Management, IT Advisory, Accounting Advisory Services and Business Outsourcing Services. KPMG's experienced professionals help companies stay on track and deal with risks that could jeopardize their survival.
