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
- Assessing the organization’s culture August 1, 2015
- The digital trends most likely to influence business strategy July 29, 2015
- An internal audit conversation between Paul Sobel and Norman Marks July 28, 2015
- Core Principles for Effective Internal Audit July 24, 2015
- Compliance and risk appetite July 18, 2015
- Integrating strategy, risk, and performance July 3, 2015
- The value of heat maps in risk reporting June 27, 2015
- Thoughts about risk analysis June 19, 2015
- Are you interested in a conversation about risk? June 19, 2015
- Evaluating the external auditors June 14, 2015
- World-Class Risk Management June 13, 2015
- Cyber risk and the boardroom June 5, 2015
- CFOs can use risk management to create a competitive advantage May 31, 2015
- How much cyber risk should you take? May 24, 2015
- A huge problem with risk appetite and risk levels May 17, 2015
- New Corporate Governance Principles Published August 3, 2015
- A New Mission for Internal Audit July 27, 2015
- KPMG Advises on the Top Risks for Internal Audit in 2015 July 20, 2015
- The State of Social Media Compliance Risk July 6, 2015
- The Greatest Cyberrisk of All June 26, 2015
- Trends in GRC June 22, 2015
- Recent Insights Into the External Auditors’ Performance June 15, 2015
- Difficulties Assessing and Addressing Cyberrisk June 5, 2015
- Masters of Risk Management June 1, 2015
- Some Boards Need to Be More Assertive May 26, 2015