Risks to watch in 2011
The World Economic Forum released a report on global risks to watch in 2011. You can find it here.
I believe this is a helpful list of risks affecting the global economy – for organizations to reflect on how these issues might affect them. I would not recommend it for any other purpose.
My top ten risks (not in any order) are not nearly as exciting as floods and famine:
- The inability to practice effective risk management, enabling risk-intelligent decisions, strategies, and actions. What can you conclude when only 12% of global companies of size have a CRO?
- Failing to understand the velocity of risks, and being surprised because you only look for and consider risks every three or six months instead of managing risk at the speed of business
- Complacency by risk officers and executives – “our risk management is fine” and “we survived the last crisis so no changes are necessary”
- Being so risk-averse (due to regulatory influences, for example) that the organization fails to optimize performance
- Continuing to take risks you don’t understand (think derivatives or doing business in an emerging nation)
- Focusing on the risk of new technology (such as social media) but not leveraging it to full advantage
- Racing to leverage the benefits of technology without sufficient up-front attention to risk
- Failing to ensure the information necessary to run the business (including risk management) is timely, current, reliable, and complete – and in the hands of the people who need it
- Failing to understand that technology is changing how people live and work – and failing to adapt the business model, processes, practices, etc.
- Business as usual
What are your top ten?
- How to Address the COSO Principles for Sarbanes-Oxley April 15, 2014
- Evaluating New Technology April 7, 2014
- PCAOB Board Member Clears the Air About SOX and the External Auditors March 31, 2014
- An Internal Auditor Recommended Taking More Risk March 25, 2014
- Transforming Internal Audit Through Critical Thinking March 17, 2014
- What Are the Characteristics of a World-class Risk Management Function? March 14, 2014
- Deloitte and the Risk-Intelligent Chief Audit Executive March 3, 2014
- Deloitte Suggests Finance Needs to Consider Risk in Planning, Forecasting, and More February 24, 2014
- A Review of Recent PwC Reports on Boards, Audit Committees, and Governance February 17, 2014
- Congratulations to PCAOB for New SOX Guidance February 10, 2014
Recent Posts on this Blog
- What is effective risk management?
- The Practitioner Leader
- Missing the boat on IT and technology
- The continuing failure of the risk appetite debate to focus on desired levels of risk
- New Paper on Risk Assessment and the Audit Plan
- Risk Officers on the Front Lines of the Big Data Analytics Revolution
- New book on risk management for government decision makers
- McKinsey talks about a forward-looking board of directors
- COSO Checklists – Is your audit firm using one?
- Interesting new paper on risk culture
- Questions for the Audit Committee to ask the External Auditors in early 2014
- Understanding the COSO Frameworks
- Internal Auditors should be Brave
- ISACA releases white paper on Big Data
- What Audit Committees (Should) Want