CFO Insights

CFO Lens – Risk under the spotlight

Our CFO Lens provides a number of articles around risk, particularly for CFOs ranging from the Future of Risk to Making Risk Management Part of Strategy. In this article, we take a brief look into insights around where risk is going and how to manage it as part of strategy.

Future of Risk

The risk landscape is rapidly changing with daily headlines bringing new reminders that the future is here and it is not showing signs of slowing down. We have entered the fourth industrial revolution, enabled by technology and driven by constant disruption. In the past, risk management was often an exercise implemented as a result of fear and avoidance, with organisations focused primarily on completing necessary, compliance-driven activities. This is changing with many leaders now viewing risk in terms of their potential to create value and drive performance.

Our article on the Future of Risk outlines the new rules to navigate the new game wrought by the age of digitisation.

Making Risk Management Part of Strategy

Deloitte Independent Senior Advisor and retired CFO of Walmart, Charles Holley writes on how he integrated risk assessment and management with strategic planning and execution, bringing enterprise risk management (ERM) into the corporate centre. Drawing on his experience, he shares a few steps on how CFOs can incorporate ERM into strategy, these are:

  • Establish a strategic risk-awareness culture
  • Establish a robust ERM process that runs parallel to strategy development and goes deep into the company
  • Centrally locate ERM and staff it with people who have a strategic mindset
  • Leverage the board
  • Gain buy-in from business unit leaders

Holley believes that with these, organisations are better equipped to assess risk relative to the strategy and decide how to address it proactively.

To read about this and more risk-specific insights, download or sign-in to the CFO Lens app by clicking on one of the below links.

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About the author

Deloitte South Africa

Deloitte is one of the country's leading professional services firms in Southern Africa, and is dedicated to assisting companies succeed in the business environment- whether it be through our tax, audit, consulting or financial advisory services.

At Deloitte, we understand that solutions are not just a static one dimensional report, but rather, an integrated and innovative answer that helps our clients to better understand key complex industry issues. Not only do our solutions assist our clients in making strategic business decisions, but our unique approach also allows companies to succeed in a competitive business environment by staying ahead of industry trends. Through the collective expertise of nearly 3600 people in 8 cities in South Africa and in 16 cities in Southern Africa, and as a member firm of the global organisation Deloitte Touche Tohmats, we have access to deep insightful and intellectual capital of more than 150 000 people worldwide.

Deloitte- A Culture of Excellence
A key contributor to Deloitte and our culture is the development of human capital. At Deloitte we believe in investing in our culture, in our clients and in our people. The very essence of Deloitte is to offer services of excellence, to both clients and staff, and we believe that it is this culture of excellence that will help us succeed.

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