Defining the Goals Behind Risk Management

Everyone in the world agrees that businesses operate in an environment that is increasingly uncertain and increasingly shifting. Indeed, globalization, with its consequences, has blurred the boundaries between the company and its subcontractors. Mergers and acquisitions have accentuated this impression of almost universal instability.

There will always be risks

Old organizational models no longer correspond to current issues. Each company faces the emergence of increasingly numerous and diversified risks. According to experts, the era of risk will never disappear.

Faced with this environment of less and less predictable and more and more aggressive risks, companies like Cane Bay Partners are there to help clients identify, assess, and manage both actual and potential risks.

The purpose of a Risk Manager is to train risk management professionals to:

  • Master the integrated management of quality, safety, and the environment
  • Implement a sustainable development approach
  • Increase the performance and competitiveness of the company

Theoretical and practical approach to risk management

Companies have always been exposed to risks. It is essential, before situating these risks in their nature and from a historical perspective, to come up with a definition of risk management. Traditional approaches to risk management, despite their merit, had the characteristic of being fragmented.

They no longer seem to correspond to the issues and risks associated with the new economic environment. Indeed, customers demand products and services of superior quality and at very competitive prices. Investors expect outstanding financial performance to increase yearly.

The bankruptcy of some US savings and loan agencies in the 1980s and 2008 and 2009 is mainly attributable to various wrong risk management approaches by managers of the same organizations. Similarly, the financial collapse in Asia during the last decade in the high-tech sector is the consequence of an unsuitable policy of risk management.

Government deregulation has created a universal climate conducive to investment and international trade. The companies can no longer apprehend risk management under the sole national prism. Today, a company that fails to manage risk effectively and has financial difficulties will undermine the confidence of domestic and international investors. The combination of all these factors calls for a systemic, integrated and structured approach to enterprise risk management.