It may be formal or informal, and it may or may not be shared across the entire organization. Ensuring that your company has installed an appropriate risk framework is a critical board responsibility. E-commerce strategy is another growing area of risk concern. For example, many companies are capitalizing on the great opportunities afforded by B2B initiatives. However, these rapidly built e-marketplaces require companies to work on an ad hoc basis with new partners.
Financial performance is a major risk management issue.
But balance sheets don't tell the whole story. Much of a company's financial performance is tied up in intangible value and intellectual property that must be protected. Too often, it isn't. Other financial risks run the gamut from excessive payroll costs and the impact of rising interest rates to inaccurate cost estimates and ineffective insurance coverage. In today's connected economy, one key focus of risk management is the maintenance of proper customer service levels.