Risk Management

Governance, Strategic planning, Prudence, Risk avoidance

In a recent edition of its magazine Cross Currents1, Ernst & Young proposes 10 priority initiatives to improve your approach towards risk management in a global and volatile environment for financial firms.

Many of these initiatives may apply to all types of companies:

Need for increased accountability

Although it has been a familiar concept for major companies for decades now, financial, operational and risk management has particularly concerned corporate management and other external interveners such as bankers, lawyers, accountants, and specialized insurance brokers.

As a result of the worldwide financial crisis that started in the fall of 2008, the necessity for increased accountability of officers and putting governance role at the forefront for administrators of public and private companies are on everybody’s mind.

In conclusion, recent events compel us to realize that organizations must broaden their forecasts and models to include the probability of extreme and rare events that may nonetheless have significant or catastrophic consequences.

This newsletter is produced for your information only and constitutes neither an opinion on the stated coverage nor legal advice.

1 Volume 9, Issue 4, “Managing risk in the downturn” by Hank Prybylski