Download Planning for the unknown unknown
Mitigating unknown and unknowable risks through effective Enterprise Risk Management
Emerging risks, such as climate change, food insecurity, energy supply disruption, and global liquidity crisis are but a few risks once thought unlikely that have now risen to the forefront. The impact of emerging risks on global business has been dramatic: venerable companies in financial services have felt the impact; entire industries have been remade. Such risks can be larger than the enterprise itself and have, not surprisingly, become boardroom issues. Some risks could be identified and anticipated, but some were not (the unknowns) or could not have reasonably been foreseen (the unknowables).While companies have made progress in integrating risk management into strategic planning and operational management, we believe there has been, on balance, an under investment of financial and human resources toward managing emerging risks. We believe companies that can intelligently and effectively identify, assess and manage emerging risks will have a competitive advantage in the future.