In today’s fast-paced business environment, coupled with significant regulatory, social and technological changes that have occurred the past few years, organizations are subject to myriad risks. As a result, it’s more important than ever to identify risks and develop a work plan to address and mitigate them.
Risk is defined as the possibility that events will occur and adversely affect the achievement of objectives. These objectives can fall into nine major categories:
- Strategic – succession planning, expansion beyond expertise, reliance on single revenue stream;
- Operational – client service deficiency, insurance coverage adequacy, disaster recover/business continuity;
- Finance – debt covenant compliance, fraud;
- Human Capital – key employee flight, inadequate training, employee access and rights;
- Social Media – accounts and activity (LinkedIn, Twitter, FaceBook)
- Information Technology – smart phone security, network vulnerability;
- Legal and Compliance – industry, federal and state regulatory compliance, payroll, Affordable Care Act;
- External – economy; and
- Reputational – all of the above.