Companies can spend an enormous amount of effort cataloguing the risks that could affect them at any given moment, on every front. While it’s important to develop that visibility, it’s just as important to measure and prioritise risks so that the organisation is prepared to respond to them in an appropriate manner. Because the environment in which you’re operating is constantly — and quickly — evolving, it’s important that organisations are focussing on the right risks, at the right time, in the right ways.
That’s where risk assessment comes in. Assessment is the technique companies use to determine the significance of individual risks in light of business goals. In this issue of Risk Angles, Dr. Patchin Curtis, director, Deloitte & Touche LLP, offers her thoughts on some questions the executive team should consider asking about the risk assessment process. Then, Dr. Mark Beasley, Deloitte Professor of Enterprise Risk Management at North Carolina State University, takes a closer look at risk prioritisation, probabilities and appetite.