Risk management and emerging risks

As corporate governance and compliance efforts are growing, these policies focus on risk management, which includes all of these topics, their different rules, and anything that potentially threatens the organization from all possible directions. However, it is as important as such programs, more often than most companies ignore some important aspects that risk groups want to manage. This will worsen them with unnecessary threats and free losses. For example, a recent study has shown that less than one third of risk management practices in most companies focus on emerging risks, despite the fact that unknown threats may be detrimental to the nature.

Perhaps this inadequate integration of these threats into risk management programs is the result of the difficulties that arise with regard to the complexity of the risks involved and many companies. Failure to understand the subject. Simply put, an emerging threat lies outside the normal everyday functions of a company that is not yet faced with it, or something that has not been so important before, has been forgotten. The problem is that these threats are most commonly recognized only when they have been and are considered backwards. Some of these examples are the many threats and risk factors that have emerged from the euro crisis, the various political insurgents and unrest around the world, as well as many catastrophic natural disasters, all of which could not be foreseen, but waves caused by the global market.

Given the difficulties of approaching the lack of foresight and understanding of the problem, it is easy to understand that companies tend to focus their efforts primarily on the threats they already know and know. Taking into account their unpredictable nature, speculation and the design of emerging risks is a costly and time-consuming effort that most companies will clearly avoid as the time and resources needed to devote a competent attempt to address the issue.

However, despite having faced difficulties with these issues, in order for a company to ensure that they did everything to protect them against potentially catastrophic circumstances, they have to step outside their convenient zone. You have to start asking hard questions and commit yourself to these problems. Companies need to know the risk management programs. Focusing on such a complex issue is quite difficult given that the strategies they have designed can never happen. However, it is always better to be safer than regret and to invest the time and effort now so that you can not be surprised later.

Source by sbobet

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