How to prepare for, investigate and resolve business risks
2020 has turned out to be quite different from what most of us anticipated. The overriding theme has been uncertainty, with – no surprise – the Covid-19 Pandemic as the main impacting external factor. Uncertainties are particularly related to the economy, aggravated by the pandemic, as well as to health. For companies, this poses different business risks, or at worst, an existential threat.
Then there’s also the question of climate change. In our blog post about the likelihood of green recovery, we discussed concerns that the pandemic results in less attention being paid to climate issues. All these unknown factors encourage organizations to look at potential business risks facing them now and in the future. Preparation for business risks originating in the external environment is vital in order to safeguard healthy business operations in the future.
Picture: Unsplash / Sammie Vasquez
Business risks across industries and regions
Business risks originating in the external environment of organizations come in various forms. For instance, insurance sector companies face risks in the fields of life insurance, health insurance, pensions, non-life insurances or any other insurance industry. These risks in the external environment may be related to legislation, competition policy, cyber attacks and identity thefts, property risks or natural disasters.
Companies operating in the finance sector are susceptible to business risks related to financial sector stability and regulation, banks, corporate finance, tax havens, credit unions, private equity finance, as well as other relevant themes. To take credit unions as an example, there are risk management issues, bad debts, money laundering, data protection issues, credit ratings, abusive advertising and site closures, to give some illustrations.
For actors in the food industry, issues of food safety, supply chain, primary production and consumer protection are essential, as are the business risks connected with these. In the health industry, there are risks connected with, for instance, human resources and healthcare, private vs public health care centers, health insurance and cybersecurity. So, the issues that different organizations face really are diverse.
Picture: Unsplash / Chris Gallagher
RiskTracker – Going one step beyond to resolve the business risk
Anticipating risks and systematically identifying them from the external environment is extremely important, but also, only a start. For our part, we have made sure that our service portfolio caters to changing needs in the best possible way. We have now launched a great new RiskTracker product to meet those challenges that our customers across different industries and regions need to tackle.
RiskTracker covers the essential business risks in any industry, market, region, or theme. The product consists of daily alerts with highly relevant content, as well as easy access to our additional analyst services. For deeper analysis of a particular risk, our strategic analyses combine research, interviews and analysis to aid our customers in their future risk management strategy.
The goal of the whole RiskTracker service is:
- to anticipate potential business risks that may have an impact on the organization
- to investigate risks to understand their magnitude and the type of impact on the organization
- to resolve risks by taking early measures to minimize, avoid or even turn the risk to an opportunity
Information and insight are crucial in the age of uncertainty. By making decisions based on them and by knowing your business risks, you are better prepared for the future, one step ahead of the competition and able to take advantage of the opportunities.
Visit our product page to find out more about RiskTracker.