Canadian CEOs recognize that risks to business are increasing
Source: PwC's 19th Annual Global CEO Survey
Jennifer Johnson, Partner and National Leader, Risk Assurance Services
Today risks aren’t only financial. They span a wide spectrum, and they could also be related to regulatory environment, tax, social or corporate responsibility, compliance, technology including cyber threats, disrupters entering the marketplace or even geography. And Canadian CEOs overwhelmingly recognize this. We’re finding that leaders are truly trying to understand these risks that come not only from within their organization but also from the broader landscape and third party business associates. But they’re often dealing with these risks from the bottom up and not tying them to business objectives.
To deal with these risks strategically, it’s critical that change come from top down and leaders tie these risks to their business objectives. This leads to a more powerful conversation at the board and C-suite level and then cascades down throughout the organization, so that all employees understand the risk strategy and work towards the same thing. This leads to managing key risks more effectively.
Once risk measurement is tied to business objectives, leaders should focus on risk reporting and communicating risk-related information more clearly—even visually—to key stakeholders.