In the accounting and finance profession, understanding risk is key to successfully diverting a company from failure to success. As a result, there is growing pressure for accountants to develop business-risk acumen on top of their financial expertise.
Enterprise Risk Management (ERM) not only enables a company to innovate but can also protect it from the downside of innovation. Companies that do novel and strategic things to create their own wave of disruption must also manage the associated risk and uncertainty. This requires a different approach that captures new thinking and new risk tools.
- By incorporating risk-sensing tools, companies can more easily predict and respond to waves of disruption
- With tools that enhance the understanding of risk, companies can develop and alter key assets to combat changes in the external environment
- When responding to risk, it’s important for businesses to not only innovate in their fields but also consider business model innovations