Strategic Risk Management-NorthArm Advisory Services
Enterprise Risk Risk Assessments Controlling Risks Training Strategic Risk
Strategic risks are risks that affect or are created by an organization’s business strategy and objectives. Strategic risk management is the response to these uncertainties and opportunities.
Strategic risks have the potential to disrupt business strategy and destroy the organization’s value. However, strategic risks can also offer great opportunities to achieve competitive advantage and build resilience. Organizational leaders can take a holistic approach that integrates business risk management and performance management as part of the overall business strategy and execution.
NorthArm is able to provide assistance in the assessments of risks to changes in strategic direction or maintaining a current strategic direction in a changing business environment.
Effective use of strategic risk management It involves a clear understanding of corporatestrategy, the risks in adopting it and the risks in executing it. Once the risks are understood, an effective, integrated, strategic risk mitigation can be developed and executed. Strategic risk management should not be seen as a negative, but rather about augmenting strategic management and obtaining full value from the strategy.
Strategic risk management is part of the overall Enterprise Risk Management process. Examples where it may be used include investment or divestment decisions, project approvals, changes in operating procedures or changes in the business environment.
Tools such as Expected Monetary Value can be used to arrive at a risk weighted value of an investment or divestment.
Expected Monetary Value