It is quiet for a while — three months, six months, maybe even a year — but then, we receive the anxious phone call. The disaster has struck. Perhaps a serious operational or governance issue was caught by an important customer or an auditor, maybe there was an inadvertent violation of a debt covenant with a lender or investor, or maybe there was an embarrassing data breach. The actual event is irrelevant; the point is that a real threat has occurred that could cause (or may have already caused) a decline in profits, value, or reputation — all because the organization didn't fully understand its risks and, as a result, lacked the appropriate controls and mitigating strategies. Conclude on the risk management processes which helps in avoiding such situations.
It is quiet for a while — three months, six months, maybe even a year — but
then, we receive the anxious phone call. The disaster has struck. Perhaps a serious
operational or governance issue was caught by an important customer or an
auditor, maybe there was an inadvertent violation of a debt covenant with a
lender or investor, or maybe there was an embarrassing data breach. The actual
event is irrelevant; the point is that a real threat has occurred that could cause (or
may have already caused) a decline in profits, value, or reputation — all because
the organization didn't fully understand its risks and, as a result, lacked the
appropriate controls and mitigating strategies. Conclude on the risk management
processes which helps in avoiding such situations.
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