What is risk? Organizational risk generally includes the many things that will lead to an undesirable outcome or impede an organization from achieving its strategic objectives. This includes the risk of not identifying opportunities to grow a company or further an organization’s mission.
Companies and organizations face a variety of risks. Some are unique to a particular sector or industry; some are more universal. Over the past year, as Baker Tilly professionals worked with their clients, certain risks were mentioned more than others:
Building an effective risk culture isn’t easy, however, when a company is also focused on running the business, catering to customers, or serving the needs of clients or constituents. A strong culture can be built over time, however, inspired and nurtured by effective leadership. In the e-book, “The evolving risk landscape,” Baker Tilly practitioners take a closer look at some of the critical risks organizations are dealing with now, how those risks have evolved in recent years, and some basic strategies to effectively manage those risks. Practitioners share their ideas on new ways for organizations to nurture a healthy risk culture without losing sight of the day-to-day work of the organization. The e-book also includes key questions that will help an organization jump-start the hard but necessary internal discussions about risk.
Ultimately, having a strong risk culture means that management and employees know what the organization stands for and the boundaries in which individuals can operate. In a healthy risk culture, the board, senior leaders, managers and employees will be empowered to discuss and debate openly which risks should be taken in order to achieve the company's long term strategic goals.