While risk management was once typically housed in finance departments, today’s businesses and governments face enterprise-wide risks around the environment, data protection, processes, and incomplete or biased information for decision making.
EQUOLOGIX uses risk-adjusted performance management methods and tools to help companies gain higher economic returns and increase stakeholder confidence by protecting against the adverse impacts of business disruption.
Risk has always been a part of business—an enduring reality that every company must address. To compete, grow and capture benefit, organizations must accept risk. It’s what businesses do.
However, today, risk is larger, less predictable, more varied and more ubiquitous. And the nature of risk is different. Nowadays, risk is magnified by supply chain complexities, shorter product life cycles, tumultuous financial markets, sudden demand shifts, emerging competitors, global collaborations, expanding regulations and technology advances.
Risk also has many more faces: cash flow crises, supply disruptions, quality failures, cyber intrusions, financial fraud and technology breakdowns.
Clearly, companies are exposed to more risk—and more kinds of risk—than ever before. In fact, 98 percent of executive respondents to equologix 2011 Global Risk Management Study—one of the most extensive studies of business risk ever undertaken—say that risk management is a higher priority for their company than it was just a couple of years ago.
Forward thinking companies—the kind equologix calls high-performance businesses—recognize that a changing risk environment requires them to change also. So instead of depending on reactive, insurance- and compliance-based approaches, many of these organizations are proactively building strategic, enterprise-wide capabilities that are preemptively focused and business-benefit oriented. The idea is to make risk management less about obligation and more about opportunity.
As executives in the energy, utilities, chemical, metals, mining and forest products industries contemplate ways to achieve high performance in their trading operations, they do so in a global business world that has been fundamentally changed by the credit crisis and global economic downturn. In this new world, companies must also contend with continued volatility in commodity markets—volatility that shows no sign of abating.