The management of risk in corporations and other entities (government, academic institutions, not for profit entities) is now well understood to be a key foundational activity to meeting an organization’s business and financial goals.
Risk management practices and techniques are in place across many such larger sized corporations and organizations. Risk management departments are now also a common feature at these types of sized corporations. There is a level of maturity that sees risk management techniques and practices used and embedded throughout the organization
At smaller organizations, however, the situation is different. Many organizations – be they privately-owned companies, SMEs, start-ups, or not for profit / charitable enterprises – are not able to afford this resourcing. As such, there will not be a Chief Risk Officer or Head of Risk Management. The owners, boards, and management teams instead must consider risk management matters themselves -without such expertise or other supporting resources.
It is akin to sailing a yacht without a map and compass – or in today’s terms – without specialized navigational equipment.
The 52 Risks® framework seeks to address this structural shortcoming by providing the map and company for all sizes of enterprises. With all risks on one page, directors and management can seek to identify and then consider the business risks their organization will face. The Mapping Template goes one step further providing a template to document the relevant risks. It can be used to comment on each risk, assign ownership responsibility, and develop action plans. Check out the 52 Risks® Resources Center for free documentation.