Risk in a business context is about uncertainty around expected business outcomes – for example, the potential impact of a diverse array of events that may enhance or impede an organisation’s ability to achieve its identified business objectives. Risk can also be viewed as a hazard (the threat of adverse business outcomes) and as opportunity (the possibility that opportunity is not adequately leveraged).
Risk management is about building the appropriate culture, processes and infrastructure for effective risk identification, measurement, mitigation and monitoring to optimise business outcomes. Corporate risk management capabilities are becoming more important as the business environment becomes more volatile, shareholders expectations for risk management escalate and regulators are placing increasing expectations on directors and executives.
Risk management should be focused on optimising risk-driven opportunities, growth and returns as opposed to just avoiding risk. PwC’s approach to risk management focuses on all of these dimensions of risk.
How PwC can help you
Whether your organisation’s key risks are strategic, commercial, financial, operational, or investment or business segment specific, we can work with you to identify the nature of risk exposures, quantify these risks and establish an appropriate risk management framework.
We focus on how risk management can be effectively integrated with existing core business functions (eg: commercial operations, planning, budgeting, reporting) to protect and enhance shareholder value.
While all risks may ultimately have a financial impact, we have defined our specialised scope of financial market risk and credit risk capabilities in the Financial Risk Management section of this website.
Our other broad suite of risk management related capabilities are captured under Enterprise Wide Risk (operational risk quantification, occupational health and safety, investment project risk assessment, enterprise wide risk frameworks).
