Risk

Are you prepared to deal with the consequences of risk?

Our 15th Annual Global CEO Survey showed how tough the past year was. 56% of CEOs said their business was directly affected by the European debt crisis, another 29% by the earthquake and tsunami in Japan, and 21% by the political upheaval in the Middle East. It’s likely that many more were affected by the floods in Thailand too. And all this on top of continued volatility in the global economy.

 

What does it mean for your business?

Focusing on the consequences of risk:

  • The challenge for businesses is in understanding the consequences of losing critical services, supplies and customers as a result of high impact risks.
  • Focusing on outcomes can bring talks about risk to a more strategic level, as they’re more likely to take place across business functions that have to respond to risk.

Understanding local risks:

  • As companies seek growth outside familiar markets, they’re finding that risks are multiplying and becoming more complex and interconnected.
  • Understanding how a wide range of specific market conditions shape the business environment is critical to managing unexpected risks and spotting new opportunities.

Monitoring local risks:

  • Many companies focus on market entry risks but underestimate the risks that come with sustained market presence.
  • How are you evolving your business practices to adapt to continuous change in all of your markets?