Risk management is a critical part of any organization’s strategy to help identify and prepare for disruptions. Today, however, companies face more complex and volatile forces than ever. PMI identified several megatrends including technological change, economic and demo- graphic shifts and climate and diversity initiatives – that are driving the need for a broader approach to risk management. For example, four out of five executives in PwC’s 2022 Global Risk Survey report facing significant challenges in keeping up with the speed of digital and other transformations.
How can organizations respond to these forces, while continuing to pursue the growth and innovation that will keep them competitive?
Organizations with strong risk management practices are twice as likely to anticipate significant revenue growth and five times more confident in their ability to deliver on outcomes, according to PwC’s research. These organizations also perform better, as confirmed by a 2020 aca- demic review in the IAA Journal of Applied Science.
These companies have a strong risk culture. Individuals, teams and departments across the organization not just in isolated risk func- tions have the skills to recognize and evaluate risks to see not only threats and restrictions, but opportunities and accelerators for growth. They have a common understanding of both the organization’s strategy and its risk appetite and use technology and data to support effective decision-making.
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