If most midsize companies have a formal risk management process, why did so many fail even in pre-pandemic years? The problem is that risk heat maps — many companies’ primary tool for assessing risk — have fatal deficiencies.
The risk heat map process looks at big, blunt risks (like sales force effectiveness and potential hurricanes), but doesn’t clearly identify the more granular and immediate risk elements that threaten profitability and possibly survival, especially in today’s fast-changing markets. The good news is that transaction-based profit metrics…
