So you can sleep better at night
Running a business successfully in today’s environment is increasingly challenging. As businesses expand and globalise, there are added challenges in dealing with people of different business cultures and backgrounds, varying regulatory frameworks and competitive environments. There are constant demands for senior management’s time which is proving to be scarce. There are always fires to put out and management may get overwhelmed with day-to-day operational issues and may get distracted from strategic ones.
Knowing what to do when things actually go wrong is just as important as preventing and detecting any wrongdoing, whether by mistake or intent. It is therefore important that the organisation understands its risks, be it strategic or process-related, have a sound control environment and robust internal controls, and be alert to what needs to be done when a fraud occurs or when a dispute arises. Proactive organisations need to be able to seize control of such situations and react when a disaster erupts. How one deals with a crisis is critical in turning it into an opportunity.
There are widely differing motivations for managing risks and many levels of sophistication for its application.