Risk manifests in a range of ways and may have a positive or negative effect on a business. It is vital that those responsible for stewardship and management are utilising the optimal methods for identifying and subsequently managing risk. Managing risk effectively has enabled the most successful businesses over time and it has become increasing the case to gain competitive advantage in a fast paced and digital economy.
Any organisation is, in the ordinary course of business is exposed to several types of risk, some of which may have serious adverse consequences. Consequently, it is essential that enterprise risks are fully understood and controlled in a sustained and comprehensive manner.
Risk velocity measures how fast an exposure can impact an organisation. In short, it is the time between a risk event occurring and an organisation feeling the effects of the event. It has become apparent while organisations are operating against the backdrop of the COVID-19 pandemic and all of its associated uncertainty that risk velocity is increasing. Below we examine some of the key risks which businesses are likely to continue to face in 2021.
It is more important than ever for businesses to proactively manage their risk landscape and internal control environment. Internal audit functions will need to work hard to keep pace with changes in enterprise risk to best inform their internal audit plans and support their Audit Committees and Boards in addressing risk priorities, most especially as the large majority of businesses re-evaluate their strategic direction and the strategic enablement of their businesses post pandemic.
Our BRS team are here to support and advise on how best to manage your current and emerging risk priorities and best enable your business for the new normal.