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
- Is a new maturity model for GRC the right model? September 25, 2016
- The Wells Fargo “Staff Scam”: More questions and fewer answers September 16, 2016
- The astonishing Wells Fargo fraud September 10, 2016
- Leading an effective information security capability September 4, 2016
- Have your provided comments on the COSO ERM draft? August 31, 2016
- How to do your internal audit risk assessment August 27, 2016
- Do techies really understand cyber risk? August 20, 2016
- Continuing to learn about culture from Toyota August 13, 2016
- The danger of an arrogant board August 7, 2016
- The Board and Technology: Questions to ask the management team July 31, 2016
- IIA Insights on Internal Audit Effectiveness July 22, 2016
- Deloitte predicts change for Internal Audit July 20, 2016
- Risk and Opportunity Management July 2, 2016
- Risk reporting to the Board June 26, 2016
- We need to review and provide feedback on the COSO ERM Exposure Draft June 19, 2016
- Fraud, Abuse, and Corruption September 26, 2016
- Reconsidering the Board: Its Composition and Oversight of Management September 19, 2016
- Time for the Board to Take a Deep Dive Into Risk Management and Risks September 12, 2016
- Oversight of the External Auditor September 6, 2016
- Signs of a Failing Board August 29, 2016
- Contrasting Comments on Internal Audit From a CAE and a Consultant August 23, 2016
- Asking the Tough Questions About Internal Audit August 15, 2016
- When Risk Management Fails August 8, 2016
- An Internal Audit Ambition Model August 1, 2016
- Understanding and Assessing Governance Risk July 25, 2016