Enterprise Risk Management/Risk Management Assessment

Current economic pressures combined with increasingly complex market conditions are highlighting the need for companies to better identify and manage business risks. Looking at how the recent credit crisis has rippled through the business community, from the largest to the smallest companies, it is clear that some level of risk management should be considered by all organizations regardless of size. Because of these dynamics, enterprise risk management and risk assessment processes are taking on an elevated status in the eyes of business owners, board members, stakeholders and regulators. An effective risk management function aids in the decision making process by taking into account the effects of uncertainty on achieving certain objectives.

PKM’s Risk Management Assessment Service (RMAS) approach uses an objective and tailored top-down approach to help companies assess their current risk position and also identify ways to enhance current risk management activities to better match their desired risk profile. This approach considers both the downside and upside of risk. We understand that risks should be managed and this does not necessarily mean minimized. We like to remind ourselves what every businessperson knows…“No risk, no reward.”

The primary goal of our approach is to provide an objective view of how well your organization is managing market, credit, and operational risks against the company’s returns. This includes consideration of the business objectives and the overall business environment in which you operate. In short, we work to help you to determine how well are you being rewarded for the risks you are taking.

Organizations of all types and sizes face a range of risks that impact the achievement of strategic initiatives, operational processes and projects. However, we have found that because risk is unique to every individual and organization there is no one-size fits all approach to enterprise risk management. We recognize that the formulation and structure of any risk management process varies by company. These activities are primarily a function of the organization’s size and growth rate.

Because of this, we tailor our risk management assessment approach to consider your company’s inherent risks. This includes considering the complexity and maturity of your industry/market position, chosen business model and transaction cycles. With this approach we can develop a risk management assessment approach that can be applied to the entire organization, across many areas and levels, at any time as well as to specific departments, functions or projects.

For more information on enterprise risk management and the risk management assessment process, view this link to read a white paper entitled, Unlocking the Unknown: The Key to Risk Management.