52 Risks® framework brings together in one framework the key strategic, financial and operational risk categories that face all businesses. It also proposes a common language and terminology for business risks in a consistent manner.
There are many different ways in which businesses can use the 52 Risks® framework. This can be in workshops, strategic planning sessions or management meetings. Here are some of the examples in which the framework can be used:
- Use 52 Risks® to complete a full enterprise wide assessment of all business risks. This can be undertaken as a top down assessment, based on the existing knowledge of the organization by its owners and managers, supplemented by any existing, bottom up management reporting;
- Use 52 Risks® as a tool to undertake a review of strategic & emerging risks for strategic and business planning. This can be a high level review or a more detailed review;
- Identify specific business risks in the 52 Risks® framework for further interrogation – or more substantial deep dives – on specific clusters of risks or individual risk categories;
- Undertake a risk review, using the 52 Risks® framework, of a specific investment, acquisition or capital expenditure to assess the potential risks and impact on the overall risk profile of the organization from the particular initiative;
- Use 52 Risks® as a tool to assist with forecasting future scenarios and assessing downside risks for the organization at an enterprise level;
- Use 52 Risks® an educational tool for executives and business managers to better understand the risk profile of an organization and its business units;
- For external stakeholders, such as equity investors, debt investors, financiers and credit rating agencies, use 52 Risks® as a tool to assist gaining a greater understanding of the business risks of an organization.
Use of the framework will enable strategic planners and business decision makers to debate and agree on risk factors facing a business using a concise and easy to follow framework. This will result in more effective and well considered strategic planning and business decision making resulting in more resilient organisations.