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?
Recent Posts on this Blog
- Auditing Risk Appetite September 27, 2014
- Leaders of internal audit should never be satisfied September 12, 2014
- Auditing Forward September 6, 2014
- An Effective Compliance Program August 31, 2014
- Dynamic, iterative, and responsive to change August 23, 2014
- Where is internal audit world-class? August 17, 2014
- SEC and SOX plus COSO 2013 News August 16, 2014
- World-Class Internal Audit August 13, 2014
- Advancing the Practice of Internal Audit August 9, 2014
- Updating the IIA Standards August 7, 2014
- Changes to IIA Blog Sites August 2, 2014
- More Poor Guidance on COSO 2013 July 30, 2014
- Risk Management is not about Defense July 28, 2014
- A Call For Internal Audit Change July 21, 2014
- Understanding Governance Risks July 14, 2014
- Going Beyond Risk Levels July 21, 2014
- Time for Internal Audit to Graduate July 14, 2014
- A Whistleblower Line Is Not Enough July 7, 2014
- The State of Internal Audit June 30, 2014
- Trust May Be the Enemy of the Board June 23, 2014
- Considering the Governance Committee of the Board June 16, 2014
- Reflections on Corporate Culture After the GM and VA News June 9, 2014
- Board Oversight and Insight June 9, 2014
- The Risk of Judgment Errors in Financial Reporting May 27, 2014
- Talking Sense about COSO 2013 and SOX May 16, 2014