What role do you think risk and risk management plays in the modern enterprise?

Asked by Brook Walker

Brook,

According to me, risks are to be viewed in a holistic manner and not separately as Strategic and Operational. Risk Management involves recognition of risks, Risk Assessment, Developing strategies to Manage Risks, and Mitigation using resources. The increase in cost of risk and compliance activities are leading enterprises to integrate compliance and risk management into a comprehensive risk management function, which addresses all sort of risks, and which will enable organization to increase their business efficiency. Integrating Strategic and Operational risks brings forth a large potential synergy in terms of risk identification and assessment and also with respect to adopting appropriate responses, aligned to business strategy in addressing them. Therefore I would not separate this into two.

Best Regards,
Sujatha