Implementing Enterprise-Wide Risk Reduction Across Operational and Financial Processes
Source: Syntex Management Systems
The ultimate goal of Risk Management is targeted at reducing any factor that represents a threat to a company attaining its strategic objectives. The desired outcome is to reduce the variability in the organization's process execution and thus produce more predictable financial and operational results. The scope of the financial impact is on both revenue and net income because Risk Management is as concerned with revenue growth as it is with loss prevention. This expanded opportunity is based on the premise that a continuous improvement initiative enabled by enterprise-wide common Risk Framework will increase risk mitigation effectiveness, reduce process variability, and help ensure that a company's strategic objectives can be accomplished.