Risk Intelligence: Best Practices in Risk Management and Corporate Governance

by Michael Fuchs — principal with Deloitte Consulting LLP

With recent events on Wall Street and their spillover onto Main Street, the widespread call for stronger risk management in recent years may seem prescient now. In fact, a growing list of issues makes risk management more of a stay-awake issue for executives every day:

* The growing concern and uncertainty facing the global economy.
* The impact of the banking crisis on credit-reliant businesses.
* The ever-growing volume and complexity of global regulations.
* Increasing scrutiny of Board oversight of risk management.
* The potential for negative publicity over ineffective risk management.

Given the wide array of business risks facing companies in these turbulent times, the notion of “transforming” risk management is likely to be a popular subject going forward. Rationalizing and aligning risk management activities can help bring order to disparate and overlapping activities. The result should be a more coordinated, streamlined, and economical approach to risk management.