Risk intelligence
Improving business performance through governance, risk management and compliance
Organisations that are effective and efficient in managing risks to existing assets and future growth will, in the long run, outperform those that are not. These are risk intelligent enterprises.
The competitive benefits of risk intelligence include:
- ability to quickly detect, correct, escalate and prevent risk issues
- reduced burden on business operations by optimising risk management processes and controls
- enhanced strategic flexibility for dealing with both upside and downside scenarios. The risk intelligent enterprise views risk not just as vulnerable to the downside, but also preparedness for the upside
- ability to provide a “comfort level” to the Board and other stakeholders that the full range of risks is understood and managed.
Deloitte believes that risk intelligence is a fundamental component of business performance management. Risk intelligence should be integrated into core business and decision making processes such as strategic and business planning.
Please see our Risk Intelligence Series for more information about this important topic which includes an insightful definition of risk intelligence, a discussion of key concepts, real world examples of proper approaches and suggested steps for bringing risk intelligence to your organisation.
The risk intelligent enterprise
At the centre of the risk intelligent enterprise is governance, which is both the board and management’s oversight of an organisation’s risk and compliance programmes.
The risk intelligent enterprise cannot be achieved overnight. In most cases, organisations will move through distinct stages of development. The lowest state of risk management capability is characterised by an ad hoc, if not chaotic approach that depends highly on individual responses in the absence of more systematic approaches.
Once specialisations have emerged, subsequent stages will involve moving risk management out of “silos” and toward a fully integrated risks, controls and compliance framework.
The highest state of capability will build risks and controls considerations into corporate strategy and the decision-making process, with a proper emphasis on risk-taking for further growth and reward as well as the protection of existing assets.
Deloitte uniquely has the full range of governance, risk management and compliance service capabilities required to help organisations attain risk intelligence.
We work with clients to improve their business performance by helping them understand and manage their risks and controls throughout the enterprise.
