Risk

Are you prepared to deal with the consequences of risk?

Economic uncertainty troubles as many as 80% of US CEOs. Not surprisingly, CEOs have hesitated in the recent past to place big bets on new initiatives. That may be changing gradually; risk concerns caused 39% of US CEOs to change strategy last year, but only 19% say risk is a driver of change this year.

The caution and discipline shown in recent years appears to be paying off – there is a readiness to pursue new opportunities. What about preparedness for disruptive events like the Eurozone crisis and the Japanese earthquake? Some companies are succeeding by focusing more on managing the consequences – e.g., supply chain disruptions – rather than getting bogged down calculating the theoretical probabilities of various scenarios.

Featured risk insights

10Minutes on information security This report identifies 10 key questions to help CEOs and directors assess how well their companies manage information security risks and where they can do a better job.
View 12: Eyes wide open Corruption can have serious consequences for companies and executives. But it's about more than establishing the best defense: How businesses develop and implement their anticorruption strategies will be the key to seizing global opportunities.
GRC Webcast: Governance, risk and compliance webcast series There is no handbook for integrating risk and performance management, but in this webcast PwC risk and operations leaders discuss how companies can achieve success with a principled approach.
Corruption crackdown* A new anticorruption era is forcing companies to change their behaviors to adapt to the financial and reputational risks that come with global expansion, especially in areas where geopolitical risk and corruption are pervasive. An aggressive international push to fight corruption has moved beyond well-intentioned rhetoric and toward hard results, with Foreign Corrupt Practices Act (FCPA) investigations and enforcement actions spiking over the last several years—a trend which is likely to intensify in the days ahead. Business leaders and board members should take notice: How well companies prepare for geopolitical risk and anticorruption compliance could make or break the viability of doing business in new markets.
Podcast: Joe Atkinson, leader of PwC's US Risk practice, on the 5 stages to truly integrating risk and performance to achieve risk resiliency Traditional, compliance-focused risk management has created blind spots for businesses. Joe Atkinson, leader of PwC's US Risk practice, discusses the 5 stages to truly integrating risk and performance to achieve risk resiliency.
Seizing opportunity: Linking risk and performance Compliance remains a core function, but risk management must now keep pace with strategic and operational goals. Our analysis explores how companies create accountability and incentives for integrating risk and performance management.

Related risk insights

Create an integrated response to address regulatory, risk, and market forces relating to OTC derivatives: PwC
The changing over-the-counter (OTC) derivatives market poses significant challenges to financial services firms in valuation, capital requirements, and counterparty and liquidity management.

Smart grid growing pains
CIOs, utilities and other stakeholders need to make sure their smart grid goals are in synch with their overall business strategy, keeping in mind that all smart grid solutions are not a one-size-fits-all proposition. So what are the lessons that industry players are learning as they move ahead in this rapidly transforming landscape?

Supply chain risk management
Global supply chains are facing major upheavals in the world economy, and manufacturing activity is being particularly hard hit as a result. Add to the mix tight credit and dwindling demand, and bankruptcies increase. Take 10Minutes now for greater insight into supply chains – the pressures they face, how disruptions affect profitability and reputation, and why companies must analyze critical suppliers’ financial and operational metrics.

Managing risk and performance
Companies are under pressure to reform how risk is assessed and to measure its effect on a company’s performance. Linking risk and performance gives companies the confidence to take smart risks.

Extending Enterprise Risk Management (ERM) to address emerging risks
Recent large scale concerns like food and energy supply insecurity, technology overhaul, and the global financial crisis have changed the course of business. That’s why companies must adopt a systematic approach to emerging risk identification, assessment and management as part of their enterprise Risk Management (ERM) strategy.

View: spring 09 - Preparing for the unknown
In the post-recession global economy, some companies are taking new approaches to managing risk and pursuing opportunity to prepare for the unknown and new issues like food supply, tighter credit and emerging economies. In this new environment, success will come to those who demonstrate the resilience to weather change and prosper from it.

From vulnerable to valuable: how integrity can transform a supply chain
Companies reeling from supply chain breakdowns are discovering that aggressive cost cutting created new risks, like product recalls, and increased uncertainty due to the fluctuating dollar, raw material shortages, energy prices and rising costs in China. Here, PwC discusses how companies can manage their supply chains to balance a competitive cost structure with investment in the future.