Enterprise Risk Management
The Ins and Outs of Enterprise
Businesses must take steps to protect themselves from serious risks on multiple fronts. Financial risks threaten liquidity while operational failures can bring business to a halt. While new technologies expose companies to cyber threats, traditional labor concerns still pose challenges. Finally, expanding compliance requirements have increased the regulatory burden. Explore the 3 types of business risks below.
Businesses need a steady income to succeed, but unreliable customers can derail cash flow statements.
Business Credit Risk Management
Cash Flow Management: Data-driven Strategies Can Minimize Risk
Economic downturns, supplier and customer failure & political instability can all interfere with a business's ability to survive.
Managing Business Interruption Risks
Preventing Employee Theft & Fraud
Cybersecurity Risk Management
Running afoul of anti-bribery anti-corruption (ABAC) and anti-money laundering (AML) laws, tax rules, and other regulations can expose companies to penalties or prosecution.
Foreign Corrupt Practices Act Compliance
Regulatory Compliance Risk Management
FATCA and CRS Compliance
Types of Business Risks
Financial, operational, and compliance risks pose major challenges to businesses, regardless of industry or size. While the level of risk may vary from one company to the next, threats come in many forms. These three risk categories can be broken down into more specific concerns, including:
- Financial and Credit Risks: Managing cash flow, setting appropriate trade credit policies, and maintaining access to capital are important parts of protecting a business from financial threats.
- Operational Risks: Destruction of property, supply chain failures, cyber threats, and labor concerns can all threaten a business’s ability to operate.
- Compliance Risks: Businesses must contend with rules, regulations, and laws that govern their behavior. From anti-money laundering statutes to human trafficking agreements, companies are expected to follow the rules.