Risk management - helping directors to control the risks that threaten you and your business

May 2006

In a world of increasing complexity and uncertainty, companies must manage risk more rigorously than ever. It is an essential aspect of good corporate governance today. Surprisingly, however, many still fail to do so, perhaps because they are overwhelmed by the size of the task or because they feel they lack the expertise to tackle it. Even more worrying, some remain blissfully unaware of the nature of the risks they face.

Thorough risk management strategies can enable businesses to identify possible threats – be they legal, financial, environmental or operational – and to introduce systematic plans for mitigation. Those companies that adopt this type of logical and structured approach to business risks are much more likely to survive and prosper.

This Director’s Guide will help companies develop a sound strategy for managing business risks, reducing their vulnerability to threats, both present and future. Such a strategy will also assist in the day-to-day management of the business, and help them to benefit from a reduction in costs and insurance premiums.