Organizations must find ways to embed strategic thinking so that all process owners in the organization understand when and how they can take advantage of risk. Hence, Risk Management is not just a process but a discipline that every organization needs to institutionalize.
Risks, although may or may not happen, organizations should ensure that risk management is included at all levels, from strategy to key management and operational processes within the organization aiming to minimize the negative impact and maximize the opportunities to the company’s various initiatives and objectives.
According to the EY study about risk management, 97% of senior executives said their organizations had made progress in linking risk management and business objectives, but only 16% considered them closely linked. Again, 85% of them said opportunities exist to improve the linkage between risk and business performance further. But 77% limited their ability to adjust their business strategy to the changing risk landscape because they evaluated their company’s risk profile annually instead of continuously.
The recent EFQM model has brought attention to risk management, also highlights how organizations need risk management to sustain current and future business operations. In Criterion No. 5 "Driving Performance & Transformation," precisely sub-criterion 5.1 "Drive Performance & Manage Risk, "
Dr. Hamza A. Al Qadri
Quality and Excellence - SME
Quality and Excellence - SME