Risk Services

Risk benchmarking and analysis: The Risk Benchmarking and Analysis services provided by Deloitte member firms assist clients in assessing and benchmarking risk management capabilities against regulatory requirements and industry practice expectations.

Risk management processes and systems: Risk Management Processes and Systems services include assisting member firm clients with evaluating risk management process efficiency and effectiveness considerations.

Risk reporting and monitoring: The Risk Reporting and Monitoring service provided by Deloitte member firms focus on assisting clients with the establishment of a documented and consistent reporting process for management and regulatory risk reporting.

Risk management implementation and training: The Risk Management Implementation and training services provided by Deloitte member firms focus on assistance with developing and rolling out varied role-based, risk-oriented training.

Deloitte writes and compiles a regular stream of content and timely features on risk, cyber, regulatory, and compliance matters—research, topical digests, perspectives, insights, and technical analysis—which appear in a separate module of Risk & Compliance Journal, an online publication from The Wall Street Journal.

A global view of risk committees

Boards of directors have been working hard to fulfill their risk oversight responsibilities in a challenging environment. Regulations are changing rapidly in most industries, and vary significantly across countries. Investors, analysts, and the public are demanding greater transparency into risk and risk management, as are creditors, counterparties, and other stakeholders. Many boards legitimately wonder not only what regulators want, but also which approaches to risk oversight actually work.

If you asked CFOs to list the major uncertainties they’ve grappled with over the past couple of years, you might get consensus on risks such as the economy, regulation, commodity pricing, and consumer demand. But, you would probably get little agreement on how they’ve factored such risks into their financial forecasts and planning.

Part of the problem is that financial planning and analysis has not changed fundamentally from the way it was done 10 years ago, despite the onslaught of new and more-strategic risks. Moreover, there still appears to be very little process integration across risk management, strategic planning, financial forecasting, and budgeting – integration often considered vital to addressing the speed and range of risks many companies face.

In this issue of CFO Insights, we discuss what still needs to be fixed in the financial planning and analysis process and introduce an analytical framework – risk-adjusted forecasting – that seeks to tame the uncertainties in that process.