Since it is far-reaching, a timely risk assessment process provides visibility for business risks throughout the organization. The process improves overall operations and assists the company in achieving its objectives. A risk assessment process also helps to surface and mitigate unknown risks and build trust across company business units. It needs to be melded into the planning process of the organization. This facilitates changing the organization s culture so that everyone thinks about risks and the impact risks have on their job responsibilities.
Risk management needs to be broader than just an effective insurance and capital market program.
It needs to broadly encompass the entire organization in every aspect of its activities. Risk assessment should be a thorough, sustainable, and ongoing process that evolves with a constantly changing business environment.