Page 89 - Risk Management in current scenario

environment. What does this mean? This means that to address the
longer term risk, the monitoring part should be much stronger followed
by risk quantification and risk treatment at more frequent intervals, to
bring agility.

What is next?
Does it not sound so fundamental that if risk management can help bring
down the failure rate of strategy, why do 70% of all failures account for
strategic risk? The answer is worth exploring and possible reasons could
be found in the management lessons. We need to ask few key
fundamental questions to ourselves?

Do we understand risks?
Do we give due regard to risks?
Are we equipped to address the risks?

If the answer of any of the questions is "No", the probability of failure
of strategy is high.

Now, we need to ask few more questions;

Is there a need to integrate enterprise risk management with strategic
risk? Some may argue that in some organizations, the strategic risk is part
of the operational risk and so integrated within the business.

In such organizations, does the strategic risk management attract the same
attention as an operational risk? While in other organizations, where
strategic risk is yet to find a place within the risk management horizon,
there is a greater need to bring the risk management and risk culture within
the DNA of the organization, however, first thing first, such organizations
should first embed enterprise risk management within their culture. Board
has a great role to play in bringing risk culture within an organization as
tone from the top is very important.

— z —

Risk Management in Current Scenario | 87