Risk and the role of management

In the past several years, large-scale events that were once thought unlikely, distant, or isolated - climate change, food security, energy supply volatility, overhaul of technology, and a global liquidity crisis, to name but a few - have manifested and changed the course of business for many organisations.

Such global or 'emerging' risks are systematic in nature and span beyond the capacity of a single enterprise to contain. While their likelihood may have once been deemed low, their impact is now so significant - ranging from potentially life threatening through to opportunity generating - that it cannot be ignored.

Unfortunately in these uncertain times few executive teams have clear sight of the risks and regulatory challenges that lay ahead, let alone the steps they should take in order to drive growth, profits and manage their businesses more efficiently.

The challenge facing intelligent businesses is to develop a holistic and resilient approach to Governance, Risk and Compliance (GRC) that embraces change and the risks that it invariably brings.

Success is dependent on management's ability to: