0
0
Few would argue with the fact that U.S. business currently faces the most troubled economic conditions in recent memory—possibly in history—and there is little doubt that rampant, unchecked risk-taking lies at or very near the heart of the crisis. In short, it's stormy weather out there, and there are many steps that can and should be taken now to minimize negative impacts and improve an organization's prospects for weathering the storm.
Risk Management Strategies for a Turbulent Economy provides an inventory of obvious and not so obvious risk factors, then offers a wealth of strategies to develop a risk management program that works for your organization.
This special report was excerpted from the book Smart Risk Management: A Guide to Identifying and Reducing Everyday Business Risks, available from AICPA Publications. We hope the report will help you assess the universe of risks that affect your business and create or refine an organizational risk management plan to keep your objectives and strategies aligned with prevailing conditions.
About the Author
Ron Rael, Leadership Coach, is an award-winning speaker and facilitator who uses advanced learning techniques to deliver measurable, bottom-line results. Ron's highly customized High Road training systems shape existing and emerging leaders. Based upon his accomplishments as a business executive, Ron helps companies turn their drive for success into real results of employee satisfaction, customer retention, and internal cooperation.
Ron has personally trained thousands of leaders and business professionals throughout the United States and Canada. He is the author of 13 ½ Strategies for Winning the Budget Wars and Smart Risk Management.
029886PDF
Few would argue with the fact that U.S. business currently faces the most troubled economic conditions in recent memory—possibly in history—and there is little doubt that rampant, unchecked risk-taking lies at or very near the heart of the crisis. In recent history, not a day has passed without a new story of crisis: the subprime meltdown, upheaval on Wall Street, a credit crisis of gargantuan proportions, entire industries on the brink of failure. Although large entities in need of a bailout may monopolize the headlines, companies of all sizes face possible impacts and heightened risks from the financial crisis.
Business leaders are aware of the grim situation they face. For the 4th consecutive quarter, results of the AICPA/UNC Kenan-Flagler Business and Industry Outlook Survey1 are decidedly glum. An unprecedented 82 percent of participating respondents indicate they are pessimistic or very pessimistic about the economic outlook, up a full 20 percent from the prior quarter. Very few expect the situation to improve any time soon. Only 9 percent of respondents expect significant improvement before the second half of 2009. Almost half (49 percent) think it will be 2010 or later before things turn around.
In short, it's stormy weather out there, and it seems unlikely the storm will blow over any time soon. Although business may not be able to ignore or wish away current conditions, there are many steps that can and should be taken now to minimize negative impacts and improve an organization's prospects for weathering the storm. Risk management is a difficult balance. Fear of risk leads to stagnation. Taking on too much risk, as we've been consequences. A well-considered, carefully calibrated risk management strategy may be more important now than it has ever been before.
As stated in the AICPA Financial Reporting Alert Current Accounting Issues and Risks—2008,business risks result from
| • | significant conditions, events, circumstances, or actions that can adversely affect an entity's ability to achieve its objectives and execute its strategies; | ||
| • | or the setting of inappropriate objectives and strategies (in light of current conditions). | ||
This special report was excerpted from the book Smart Risk Management: A Guide to Identifying and Reducing Everyday Business Risks, available from AICPA Publications. We hope the report will help you assess the universe of risks that affect your business and create or refine an organizational risk management plan to keep your objectives and strategies aligned with prevailing conditions.
1 The survey collected opinions from AICPA members from business and industry between November 5, 2008, and November17, 2008, and had 1,606 qualified respondents. Almost half the respondents (49 percent) were CFOs, 25 percent were Controllers, and 17 percent were CEOs or COOs. Sixty-eight percent of respondents came from privately owned entities; 13percent from public companies; 11 percent from government, education, and not-for-profits; and 4 percent from foreign owned companies. Nine percent came from organizations with annual revenues of $1 billion or more, 21 percent from organizations with $100 million to under $1 billion in annual revenues, 44 percent from organizations with $10 million to $100 million, and27 percent from organizations with under $10 million in revenues. The AICPA and The University of North Carolina's Kenan Flagler School of Business conducted the survey. Full results are available from the AICPA's Business, Industry, and Government Team. For more information, visit http://fmcenter.aicpa.org.
029886PDF
Customer Service
Customer Service
Customer Service
Back to Browsing Products