Many Risk Managers talk about signals of change and disruption, but how do you turn these into action?
A signal of change is an event or trend in the future that could disrupt or influence a market or a sector. Each signal of change will have varying degrees of likelihood, impact, and urgency - how fast it’s approaching. Signals of change can take many forms:
While these changes may be disruptive, they also play an important role when it comes to finding opportunities in risk. Opportunities that can help you gain a competitive edge. Since boards of directors and executives are responsible for the long term success of their organization, they need to consider how these signals of change may affect their organization. On the one hand, leaders who think critically about the future and anticipate disruption to their sectors will be in a better position to tackle a challenging and evolving risk environment. On the other hand, history has shown, that companies that not identify, plan or react appropriately to signals of change, often do not have ample time to react and ultimately fail.
At KPMG, we believe in a structured approach when it comes to identifying and evaluating signals of change in the risk management approach; providing several benefits, such as:
In reality, many organizations don’t have such a structured approach to identify, evaluate and manage these signals yet. Fortunately, identifying those signals of change doesn’t involve guessing or crystal ball gazing, it lies in observing the market and recognizing trends and developments. That is why we’ve developed a pragmatic risk management approach which is designed to help you pinpoint and respond to disruptive changes with actionable business initiatives.
Want to learn more about how your organization can better incorporate signals of change in its risk management approach? Do not hesitate to contact us.