Risk and opportunity management
Deloitte has a robust process for identifying, assessing, managing, and monitoring risks and opportunities, both at the Deloitte Global level and at the member firm level through their respective Enterprise Risk Frameworks (ERFs).
The Deloitte Global ERF sets out the Deloitte Global Executive Committee's assessment of the priority risks and emerging risks facing Deloitte—specifically, those that could impact the ability of Deloitte to achieve its strategic priorities, meet its public interest obligations, protect its reputation and people, and operational and financial resilience. The member firm ERFs are managed in coordination with the Deloitte Global ERF.
There is ongoing and frequent dialogue between the Deloitte Global ERF team, which facilitates the preparation of the Deloitte Global ERF, the Deloitte Global risk owners, and other Deloitte Global teams to help ensure early identification and escalation of any matters requiring consideration by the risk owner or the Deloitte Global Chief Risk Officer (CRO).
The Deloitte Global CRO reports on Deloitte’s priority risks on a regular cadence to the Deloitte Global Executive Committee, enabling discussion of risk exposures and mitigation actions. Priority risks are also regularly reviewed by the Risk and Ethics Committee of the Deloitte Global Board of Directors.
Priority risks and opportunities
The enterprise risks and opportunities listed are those that, as of May 2024, are considered to have the most potential for significant impact on Deloitte’s ability to achieve its strategic priorities, meet its public interest obligations, protect its reputation and people, and operational and financial resilience should the risk materialize.
These risks and opportunities have been considered based on the potential primary impact, including where the impact is a loss of opportunity. The risks and opportunities have been categorized into the following impact dimensions:
- Risks impacting our brand, reputation, and/or public interest obligations;
- Risks impacting our strategic success or market differentiation;
- Risks impacting our operational and financial resilience; and
- Risks impacting our people, Purpose, and Shared Values.
It is recognized that risks do not operate in discrete categories and they may have more than one impact. However, for the purposes of the categorization, the focus is on the potential primary impact. Each of Deloitte’s enterprise risks and opportunities have been linked to one or more ESG categories included in Deloitte’s materiality matrix.
The way forward
On Deloitte’s journey of continuous improvement, we are considering ways in which we can enhance transparency in reporting going forward, including through providing additional disclosures regarding our response to key risks and opportunities.
Contact
Bob Graham
Deloitte Global Chief Risk Officer
rgraham@deloitte.com
