Far too many organizations have ineffective risk management, and in my experience far too few auditors are reporting this to top management and the board as a VERY serious problem. (I will let you decide what to call it; I will use the expression, “problem”.)
While this might be called a “risk management problem”, it’s really a “management problem”. You can’t expect to manage the organization effectively if you don’t see both the icebergs and the clear waters ahead.
Why is it serious? Why should it demand their urgent and personal attention?
If you are not properly considering what might happen (both downside risk and the upside opportunities that are reasons to take risk) as you make business decisions, there is a high likelihood you will make a poor decision.
You won’t even know that you are on the wrong course!
If you do not have a clear view of what I call the “big picture” you will likely fail to navigate the path ahead and optimize success. The “big picture” includes:
- Where you are
- Where you would like to get (your objectives)
- What lies ahead that can inhibit your success and could harm your ability to achieve your objectives (“risks”)
- What lies ahead that could improve the likelihood and/or extent of achieving your objectives (“opportunities”
- The ability to compare…
