The global financial crisis and Covid-19 have illustrated that organizations are fast eroding within their core competence of risk management.
While this holds true within certain investment management and corporate lending areas, as a result risk management within organizations is facing an equally tumultuous future due to an ever evolving global regulatory environment.
Our research demonstrates that lack of focus on political, product and financial risk combined with loose operational oversight on controls have been the main reasons behind institutions failing to manage risk effectively.
Today, risk is larger, less predictable, more varied and more ubiquitous. And the nature of risk is different. Nowadays, risk is magnified by non-state actors, internal staff, supply chain complexities, shorter product life cycles, customers, tumultuous financial markets, competitors, sudden demand shifts, emerging competitors, global collaborations, expanding regulations and technology advances.
Risk also manifests itself in various forms: borrowers’ credit risk – including weak balance sheets, pressure on sales and bottom line and cash flows, issues with suppliers’ credit and supply disruptions, quality failures, cyber intrusions, financial fraud and technology breakdowns.
Clearly, companies are exposed to additional and higher risk—and a wider risk spectrum—than ever before.
We simulate risk for organizations to identify and sustain higher economic returns and expand the customer base by crafting and implementing political, product risk and financial risk management capabilities and discipline.
To learn about how we can help you, please click here.