Mastering Risk Management

STRATEGIC RISK ASSESSMENTS (Risk assessments by another name!)

As noted above, strategic risk assessments identify the risks to the firm from meeting its business objectives. It is of course vital that the firm has identified these risks, or it will stand much less chance of surviving. It is surprising that many firms ignore strategic risk assessments and concentrate solely on risk assessments by department or process. While these are very useful, they are not focused on the strategic objectives of the firm.

Given the purpose of a strategic risk assessment, the risks identified are likely to be business-type risks such as the failure of an outsourcer or the loss of a member of the executive team. These will naturally have a more significant ...