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Business Risk Assessment Services

Our strategic business risk assessment services evaluate the most important risks, as opposed to the hundreds or thousands of trivial risks that may inherently impact an organization. The business risk assessment process includes an evaluation of activities that mitigate or reduce individual risks, called risk response strategies and tactics. Risk response strategies and tactics span a variety of activities. Examples include:

  • The use of various insurances
  • The best use of personnel, adding or changing skills, and training
  • New or improved uses of technologies
  • Instituting defined protocols and procedures
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Enhance Your Business Risk Assessment Process with Expert Guidance

A business risk assessment is a process intended to help an enterprise FOCUS on “what’s important?” The process is broadly comprised of three activities:

  1. Identifying situations that could place an organization in serious jeopardy;
  2. Assessing the significance of these situations by gauging the potential “impact” and “likelihood” of each, as well as the speed in which these situations can arise; and
  3. Critically evaluating and devising actions that help to reduce the impact and likelihood of such risks.

ERM Exchange’s business risk assessment uses quantitative modeling and qualitative assessments to evaluate the potential size and effect of the situation (i.e., how big and how bad could “it” become? Next, it answers the question, what actions should management consider to reduce the threat by taking into account time, energy, and cost? Additionally, a thorough business risk assessment will uncover important risks that take the identity of “missed opportunities” versus explicitly bad outcomes (e.g., not investing in a new ERP system to replace antiquated legacy systems).

Elevate Your Business With A Unique Approach To Risk Assessment.

ERM Exchange’s methodology involves a step-by-step process designed to strengthen your organizational resilience:

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  • Understand Strategies and Objectives: Gain a thorough understanding of your organization’s plans and goals, exploring how they intertwine with strategic risks.
  • Collect Information on Strategic Risk: Systematically gather intelligence on strategic risks, enabling a comprehensive understanding and proactive management of potential threats to long-term objectives and competitive advantage.
  • Create Risk Management Plans for Action: Critically evaluated risk management plans establish a robust framework for assessing business risks. This ensures resilience against uncertainties, ultimately leading to more predictable and successful outcomes.
  • Share the Strategic Risk Assessment Framework and Plan: Once formulated, the strategic business risk assessment framework is presented to the organization. This facilitates the development and reinforcement of a robust risk culture within the company.
  • Implement the Corporate Risk Assessment Plan: A collaboratively developed enterprise risk management action plan fosters a culture of continuous improvement. This strengthens the organization’s ability to achieve its mission consistently.

Elevate your business to new heights with our comprehensive risk assessment process. Our proven strategies not only mitigate risks but also lay the foundation for sustained success. Partner with ERM Exchange for a resilient and forward-thinking approach to managing uncertainties in today’s dynamic business landscape.

Look No Further – ERM Exchange Business Risk Assessment Process is the Ultimate Choice

Business Risk Assessment, as a service, begins with the organization’s strategic plan, an organization chart, and gaining access to operational and financial indicator reports as well as several other sets of information. A message is typically sent to all participants from the CEO underscoring the importance of the business risk assessment service to be performed and related expectations. Business Risk Assessments are typically performed in one-on-one interviews.

Assuring and maintaining the anonymity of each and every participant is critical – which is why it is essential to consider utilizing an independent consultant. Eliminating the fear of retribution better ensures the highest level of transparency and insight from all participants.

Based upon the input from all participants, a report is drafted that identifies the top 10 to 20 risks that are supported by “contributing factors” and “mitigating activities” which provide context and depth to each important risk identified. Each important risk is preliminarily plotted on a heat map which gauges the level of impact and probability. The velocity (i.e., the speed in which a risk can emerge) is also gauged for certain risks. Often, all participants are gathered for a few hours to discuss the business risk assessment and debate the risks, including their perceived level of impact and likelihood, and the effectiveness of the response strategies employed. Ultimately, consensus should be achieved and each important risk should clearly link with the strategic plan of the organization.

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The Goal Or Outcome Of Business Risk Assessment?

A greater level of clarity of each risk and the related response strategies. 

Consensus achieved and each important risk and response strategy should clearly link with the strategic plan of the organization.  

A re-allocation of time, energy, and resources for the most important risk response strategies employed.  

An “owner” or “champion” of each risk is identified.  

Communication of emerging risks as well as changes to previously identified risks to senior executive management and the board on a periodic basis. 

Continued understanding of important risks and modified risk response strategies.

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How Do Our Cybersecurity Risk Assessment Benefit Organizations?

Our risk assessment services include an optional cybersecurity threat and vulnerability assessment from one of our partner firms. Cybersecurity threat and vulnerability risk assessments evaluate your current security posture to determine whether your processes, procedures, personnel, and technologies are sufficient to protect you from a harmful attack while also measuring the consequences of potential cybersecurity breaches. Cybersecurity threat and vulnerability risk assessments:

  • Understand threats and locate vulnerabilities and dangers within a company’s network security
  • Measures the potential impact or risk on the business
  • Creates controls and processes to reduce cybersecurity risk exposure
  • Enables fast decision-making for executives with timely alerts

ERM Exchange’s Risk Assessment Methodologies

ERM Exchange’s risk assessment methodologies will be based on what you need to achieve and the nature of your organization when creating your business risk management framework. Our Business risk assessment methods can help organizations of all sizes and industries create robust risk response strategies for their MOST important risks. A business risk assessment is the first step to developing a robust enterprise risk management program.

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FAQ about Business Risk Assessment

Business Risk Assessment is a process that involves identifying, analyzing, and evaluating potential risks that can affect a company’s operations, financial health, and overall success.

Risk Assessment process is crucial as it helps organizations proactively identify and manage risks, enabling them to make informed decisions and mitigate potential threats to achieving their business strategies.

The frequency of assessments often varies depending on the industry and the velocity of change within the specific business sector including the nature of the business, competition, technological influences, industry regulations, and customer preferences.

Challenges in executing an impactful Business Risk Assessment often include an unwillingness by senior leadership to dedicate time and energy into critically evaluating new and existing business strategies, and the risks to achieving those strategies. Many executive teams are “too busy” to stop and critically think about their situation. Another challenge is not including the next layer of management in the risk assessment process.