Enterprise risk management has taken center stage in many organizations as they grapple with the lingering effects of the COVID-19 pandemic, economic uncertainties, the rapid pace of business change and other potential business risks.
Forward-looking corporate executives recognize that stronger risk management programs are required to remain competitive in today’s business world. For example, one aspect of the current enterprise risk management (ERM) landscape that companies must contend with is the connectivity of risks between different organizations.
Businesses are increasingly interconnected with partners, vendors and suppliers across global markets, complicating various types of risks they face, explained Alla Valente, an analyst at Forrester Research.
“We find that when there is significantly more risk in one of those categories it can have a ripple effect that impacts other categories,” she said. The business impact of a local natural disaster, the ongoing wars in Ukraine and Gaza, higher interest rates or other developments can cascade across an entire supply chain worldwide. Along with other factors, that makes effective risk management a prerequisite for…
