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’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, and protect its reputation and people. 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 operation of the ERF, the 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). This is complemented by a regular cadence of meetings between the Deloitte Global CRO, the Deloitte Global ERF team, and each risk owner, during which the exposure to each risk is assessed. Emerging risks are also discussed, and any necessary mitigation actions are agreed and executed upon.
The Deloitte Global CRO reports on Deloitte’s priority risks on a regular cadence to the Deloitte Global Executive, 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 August 2022, are considered to have the most potential for significant impact on Deloitte’s ability to achieve its strategic priorities, meet its public interest obligations and protect its reputation and people, 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:
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.
Through the challenges and uncertainties of the past year, Deloitte has strengthened credibility and trust with stakeholders by consistently living our purpose.
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