Five questions on managing risk in the midst of volatility
In just about any business, managing risk has been a little like keeping order on a storm-tossed ship. The environment is always changing, creating new challenges with every passing day. But over the past few years, it has frequently felt more like being caught in hurricane-force winds, when it’s hard enough to know which direction is up. Get used to it. Volatility is widely expected to dominate the business environment for the foreseeable future. In fact, when Deloitte and Forbes Insights recently surveyed leading U.S. executives responsible for risk, we found that 91% plan to reorganize and reprioritize their approaches to risk management in the coming three years. Nearly 80% said this was due to market volatility over the past three years.
All of which opens the door to a host of questions about how to manage risk in the face of such extreme volatility. In this issue of Risk Angles, we ask Mark Carey, partner, Deloitte & Touche LLP, some pressing questions about this important issue. Then, Henry Ristuccia, partner, Deloitte & Touche LLP and Global Leader of the Governance, Risk and Compliance practice, offers his perspective on utilizing technology to help stay ahead of risk in the coming years.
This Risk Angle answers the following questions
- We've already weathered the most volatile business environment in decades – so why change now?
- Who should be leading the charge?
- Should we be more worried about a particular type of risk?
- Shouldn't the Enterprise Risk Management (ERM) program suffice for managing risk? After all, we’ve made some big investments in ERM in recent years.
- Our business is still undergoing some fundamental changes, due in part to recent market volatility. Shouldn't we focus on making those changes before revamping our approach to risk?
It also takes a closer look at utilizing technology to help stay ahead of risk