Enterprise Risk Management

52 Risks® Update (November 2021):, FINSIA Article: Risk Management Foresight Not Hindsight, Top 12 Geopolitical Risk Resources, Allbirds’ 59 Business Risks, and more 

FINSIA Article: Risk Management Foresight Not Hindsight

enterprise risk management article FINSIA

Defining ‘what good looks like’ in managing risks in a company can be difficult. Risk management in any business needs to be tailored for the industry, the breadth of its activities, its ownership structure and the external environment it operates in. 

There are however common key factors and outcomes that apply to all industries and different types of companies. Embedding risk management successfully really does separate high performing companies from the rest.

I outlined my thoughts on this topic in an article this month for FINSIA (the professional not-for-profit membership body in Australia and New Zealand for financial services).  Foresight Not Hindsight: Eight Key Attributes of Embedded Enterprise Risk Management Practices, can be read for free on the FINSIA website here

Top 12 Geopolitical Risk Resources 

Geopolitical Risk

It can be challenging for business leaders to stay abreast of geopolitical risks and issues that are of relevance. There are, however, a wide range of resources that can assist. 

I have compiled my top twelve government, academic, not-for-profit and media resources that can provide business leaders with insights and tools to better identify and assess geopolitical risks and issues around the world. 

Click through to the page on 52 Risks® here for the full details. 

The list includes links to Blackrock’s Geopolitical Risk Dashboard, the US Government’s International Trade Administration Country Commercial Guides, Transparency International, and nine other resources. 

Allbirds’ 59 Business Risks 

allbirds ipo business risks

Allbirds, known for its eco-friendly shoes, listed on the Nasdaq exchange in early November 2021. Allbirds debuted up 90% on their first day of trading and now has a market valuation of approximately US$2.9billion. Allbirds was foundered by Tim Brown and Joey Zwillinger in 2016 and produces what it claims are the ‘world’s most comfortable shoes’.

The Allbirds IPO document detailed 59 business risks for investors to be aware of. There were 22 strategic risks, 17 financial risks and 20 operational risks. The risks covered a wide spectrum including revenue and profitability, manufacturing and supply chain, reputation and social media, and ecommerce.

A few of the risks detailed in the IPO document to note are:

  • “We have incurred significant net losses since inception and anticipate that we will continue to incur losses for the foreseeable future.”
  • “If we are unable to anticipate product trends and consumer preferences and successfully develop and introduce new products, we may not be able to maintain or increase our revenue and profits.”
  • “If we continue to grow at a rapid pace, we may be unable to effectively manage our growth and the increased complexity of our business and, as a result, our brand, business, and financial performance may suffer.”
  • “Our business depends on our ability to maintain a strong community of engaged customers and Allgood Collective Ambassadors, including through the use of social media. We may be unable to maintain and enhance our brand if we experience negative publicity related to our marketing efforts or use of social media, we fail to maintain and grow our network of Allgood Collective Ambassadors, or otherwise fail to meet our customers’ expectations.”

Business leaders and risk managers in similar businesses and industries can learn a lot from these disclosures. You can read the full list of Risk Factors in the Form S1 lodged with the US Securities Exchange Commission here.