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Description
WHILE ALL ORGANIZATIONS AIM TO grow, the path to achieving growth is anything but straightforward. Growth can be achieved through new products and services, geographic markets, customer segments, distribution channels, and lines of business as well as mergers and acquisitions. Each of these growth drivers represents different risks and opportunities for the business. The key to achieving sustainable growth lies in optimizing opportunities while balancing and containing the commensurate risks.
Growth risk management is a subset of enterprise risk management (ERM) that warrants senior management attention for organizations that are seeking aggressive growth. Although the chief executive officer (CEO) and senior management are responsible for managing growth risks, chief audit executives (CAEs) can enhance the quality of the process by facilitating the inclusion of growth risk management considerations in the organization's overall strategic planning process, providing an objective assessment of the related controls and monitoring processes, and recommending measures to enhance the design and effectiveness of controls.
Whatever growth strategies an organization relies on, three components are important to increase its chances of success: understanding market needs; crafting a challenging, yet achievable, growth strategy; and ensuring the organization is ready to execute the growth plan. CAEs can help CEOs focus on the key risks in each component by centering the... |
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