What is in this article?:
Over the past few years, risk management has found itself in the headlines. From the Lehman collapse to the Japan tsunami, businesses have a renewed interest in risk management. In fact, a 2010 Global CFO Survey found that managing enterprise risk garners now almost twice the attention it did in 2005. And, according to a survey by KPMG, 91 percent of senior finance executives believe improving risk management is an opportunity for finance to contribute more to business performance. A Risk Renaissance is underway.
More disruptions and emerging risks than ever before have made clear that a prepare-for-the-worst mindset is critical in protecting a company's financial health. So, as continued volatility and economic uncertainty exposes need for smarter business decisions, businesses have begun to seek deeper levels of insight that support a more holistic risk management strategy.
Historically, sovereign and geo-political risk has led businesses to avoid specific countries or entire regions. However, sovereign risk is only one element of evaluation needed when doing business internationally. Analyzing country specific commercial and business risk in-depth helps companies approach potentially high opportunities with the insight to protect against existent risks. Without an expansive approach to monitoring the growing list of risks – and opportunities – a mitigation strategy is ineffective. Consider the following:
