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.
