Transforming Risk Management
Risk management has long been recognized as an integral part of good business management practices. But are the organizations looking for risks in the right places? Historically, the main efforts in risk management have been focused on the legal, compliance, and financial-reporting activities. Recent studies show that the time the auditors spent on different types of risk is disproportionate to potential significant losses in market value. Strategic risks attribute to 86% of losses in market value with auditors' time spent of 6%. Organizations now realize that the greatest detriment to shareholder value comes from strategic and operating risks.
Mitigating Risks or Embracing Opportunities
“Risk Management is often synonymous with Risk Prevention but it shouldn't be…”
“60% of corporate strategy officers feel their company’s decision-making process is too slow, in part because of an excessive focus on preventing risk. While only 20% described their companies as risk seeking.”
“Three best practices for assessing and managing risk:
1. Strike the right balance between risk and reward
2. Focus on decisions, not process
3. Make employees the first line of defense”
— CEB “How to Live with Risks” for Harvard Business Review.
Making Better Decisions
3COTECH helps organizations to assess, analyze and mange risks and opportunities. We help coordinating and categorizing stakeholder inputs through risk workshops and close collaboration for better decision making and value creation.