Understanding Risks: How It Can Affect Your Business

Risks are uncertain future events or conditions that bring about positive or
negative effect on the company’s objectives of achieving goals. It has three
components: (1) the probability of occurrence, (2) the impact of the risk on the
systems affected, and (3) the time horizon during which the consequences will
occur if the risk is not mitigated. Furthermore, risks stem from a wide variety of
sources which includes financial uncertainties like the rise and fall of interest rates
and foreign exchange rates, legal liabilities, technological issues, errors in strategic
management and natural disasters.

These harmful events can cost severe damage to operations and lead to
losses or  even lawsuits which can tarnish the company’s image. Therefore, it is
important to mitigate effects of risks through risk management processes that are
generally performed to identify, eliminate, or lessen the potential harm that risks
bring about to the company.

Risk management is the systematic process of identifying, analyzing,

assessing and controlling threats to an organization’s capital and earnings
decreasing potential losses and protecting the valued assets of the organization.

Successful risk management programs gives the organization a bird’s eye

view of the wide variety of risks it faces and examines the relationship between
risks and the impact it has on the organization’s strategic goals (Tucci, 2021).

Risk management is important as new risks constantly emerge and has

grown more complex fueled by the rapid pace of globalization these days and the
recent emergence of an external risk— the Coronavirus Pandemic which affects
the health and safety of employees and the methods of doing business which
rapidly changed in a short period of time (Tucci, 2021).

The risk management processes revealed by ISO 31000 Standard applicable

by all types of organization compromises: (1) identifying the risks, (2) analyzing
the likelihood and impact of each one, (3) prioritizing risks based on business
objectives, (4) responding to the risk conditions, and (5) monitoring results and
adjust as necessary.

With proper risk management processes, organizations are well-prepared for

the anticipated risks, mitigating its harmful effects to the company and its
operations.
 Organizations seek consultation from risk management consulting services
to assess their current risk position and identify the solutions possible to their
situation.

ACGT offers a strategic approach to risks by identifying the organization’s

business priorities and current challenges to ensure realistic and actionable project
recommendations. A risk review is performed to establish a uniform understanding
of exposure and quantifying the materiality of risk. This action looks into
opportunities and unknown risks which are relative to your business goals.
Common projects include portfolio modeling for cyber risks, mortgage default
analysis and more enhancing your risk management strategy and operations after
assessing your risk.

We ensure to offer clients the best recommendations possible because we

deeply value the things that have great value them, helping them achieve their
goals all the more protecting their future.