Today’s business world is constantly changing — it’s unpredictable, volatile, and seems to become more complex every day. By its very nature, it is fraught with risk.
The concepts of risk and risk management are not new ideas. Companies have always been exposed to risks and senior managements have always responded. But, as today's business and regulatory environments become increasingly complex and the rate of change continues to accelerate, there has been much more focus on risk management.
The scope and complexity of business activities undertaken by companies have increased and so have risks from factors such as extended supply chains, rising commodity and energy prices, technology and the availability of skilled human resources. Furthermore, the continued globalization of business has raised the profile of political risk and introduced new sources of competition. Finally, complex and changing regulatory requirements as well as macroeconomic issues such as economies of scale and climate change all combine to mandate that companies review current approaches to managing risk.
Recent volatile times can be perceived as a "shaping" era for many organizations worldwide. The economic crisis has demonstrated once again the importance of risk management as a catalyst for economic prosperity in one hand and as a basis for business stability on the other.
Holistic, effective and efficient risk management in the organization will lead to realized added value to the day-to-day management processes and to an improvement in its long-term financial results. Therefore, establishing an Enterprise Risk Management (ERM) framework will be the critical factor in achieving such added value.
PwC Israel can assist you to address the following risk management challenges:
We can also help you with the following risk-specific issues: