The concept of Strategic Risk Management (SRM) has been getting more widespread attention lately but mainly from companies focusing on internal process and how SRM can improve management decision making.
The latest article in Business Finance magazine adds a new and refreshing perspective to SRM by capturing the relationship between “inherent risk” and “residual risk”. There is a point in the article that references the COSO ERM “Application Techniques” as a source of guidance.
SRM is an important part of how a company should vet issues and opportunities. While there are elaborate processes and more consultants than you can shake a stick at to help the concept remains as a sound principle for a business to embrace. We like that analysts are warming up to the idea of risk transparency and the application of recognized risk framework (like the COSO Risk Management Integrated Framework) to guide senior executives. That can only serve as a catalyst for more and more companies to embrace this process.
The ALS Group is a staunch advocate of senior leadership maturing their internal risk management process thus allowing for greater transparency to stakeholders. We believe that integrating risk management into the decision making process allows companies to add another facet to their management toolkit.
To read the entire article on why Best Buy needs to confront its residual risk, visit BusinessFinanceMag.com.
If you would like help or have questions about this process, please contact Albert Sica at 732.395.4251 or at [email protected]
