| In this challenging economy where risk is a | | | | directors, and your executive team? |
| guaranteed certainty, companies can not afford not | | | | (2.) How complete and accurate is the financial |
| to have some kind of ERM strategy in place even if | | | | information you currently have to make the |
| they are up against budgetary constraints. Yet you | | | | decision you are contemplating? |
| want a strategy which is tailored for yourself. | | | | (3.) What is the worst-case scenario that can happen |
| After all, the problems you are seeing or experiencing | | | | if you do or don't act? |
| are specific to your business. Issues can range from | | | | (4.) How committed are you, your executive team, |
| unexpected cash crunches, sudden inability to provide | | | | and your board of directors to executing the risk |
| timely financial statements, not knowing the real | | | | strategy? |
| costs to produce a product or service, historical | | | | (5.) What issues are potential doomsday scenarios |
| accounting systems which satisfies auditors and | | | | for your company? |
| accounting but leave management struggling to run | | | | So whether your base system to manage risk now is |
| their business, middle or top management in disarray | | | | enterprise risk management, ERM, strategic planning, |
| solving the issues they thought were important, not | | | | risk assessment, risk management assessment, entire |
| what the CEO thought was important, etc. | | | | enterprise risk management assessment, operational |
| And possibly off your radar, companies must | | | | review, due diligence, scenario budgeting or another |
| consider starting preparing for the carbon tax | | | | process, supplement it with one or more of the |
| Congressional leaders are forcing into law. Since | | | | items listed above. |
| politicians never like to admit to how much they tax | | | | That will help unearth the "hidden risks" that could |
| and spend, they are calling this a cap and trade | | | | topple your company with these proven methods |
| initiative to produce new green jobs. | | | | and best practices above to help your company |
| Think honestly about your answers to the following 5 | | | | maintain or restore long-term profitability and meet |
| issues. | | | | your long term business plan results and current year |
| (1.) How risk tolerant are you, your board of | | | | bonus targets. |