In today's competitive environment, there are many risks that business leaders need to be aware of. Whether this is in relation to market volatility, economic changes or geopolitical crises, it is the mark of a responsible and aware leader to ensure these external risks don't impact the organisation's bottom line.
However, if the scope of these issues is constantly changing, how often should Australian C-Suite leaders or boards identify and evaluate their risk management strategies? This topic was explored in Ernst & Young's (EY) first risk management survey, titled There's No Reward Without Risk.
Regular risk assessments
Polling close to 1200 board audit committees and executives leaders from across the world, including 82 from Australia, the research found there is plenty of room for improvement. According to EY, just 7 per cent of local boards evaluate and identify risk objectives in a timely manner in order to make everyday business decisions.
Oceania Risk Transformation Leader Catherine Friday believes that many businesses are discussing risk on a quarterly basis. However, as risks have developed faster, there is a need to address these in 'real time' and make positive corporate decisions.
"While an annual review process can be useful, it really is the bare minimum in terms of connecting risk information to business planning and decision-making," she said.
"As market dynamics and volatility continue to develop at pace, the organisations that are out-performing their peers are those that have faster and better risk identification."
What risks should Australian businesses be aware of?
Every region around the world faces different risks. As such, business leaders need to identify which issues are relevant to their operations and ensure they have procedures in place for every situation.
According to the Allianz Risk Barometer Top Business Risks 2015, the top risk for Australia is in relation to business intelligence, either through the loss of reputation/brand value or talent shortages. Of course, these can change at any time, so communication between departments will prove key.
Risk management is key in today's business world.
The role of conference calls
If EY believes the best way to deal with risks is through 'real time' identification and evaluation, it makes sense to do this via web conferencing or teleconferencing. Bringing together stakeholders, departments and different executives can ensure the entire business is focused on defusing risks in a timely manner.
Meetings can be set up quickly, without the need for travel, and risk decisions are made in an instant.
For more information about utilising the benefits of conference calls, contact the team at Eureka Conferencing today.