Holistic approach necessary

Strategic risks may be the
most crucial risks facing many
manufacturers, and companies
should consider how well their
current approach identifies and
assesses such risks.
“Improved risk assessment
provides greater protection
against disruptive events that
characterise long periods
of decline,” said Theodore
Sokolovic of Deloitte & Touche.
He said a holistic approach
to risk assessment was needed
and suggested that a change to
a company’s risk management
strategy could mean making
risk a standing topic at board
meetings or appointing a chief
risk officer
“Identifying and monitoring
key risk indicators helps
to detect potential risks at
an early stage rather than
responding to them once
they are more evident and
thus harder to mitigate,”
commented Sokolovic.