RESOURCE
Enterprise Risk Management
The Ins and Outs of Enterprise Risk Management
Businesses must take steps to protect themselves from serious risks on multiple fronts. Financial risks threaten liquidity while operational failures can bring business to a halt. While new technologies expose companies to cyber threats, traditional labor concerns still pose challenges. Finally, expanding compliance requirements have increased the regulatory burden. Explore the 3 types of business risks below.
Types of Business Risks
Financial and Credit Risks
Operational Risks
Compliance Risks
How to Identify Business Risks
There are a variety of tools designed to help businesses manage risk:
Business Credit Monitoring
Checking a business’s credit scores and ratings helps set reasonable trade credit terms that don’t expose a company to unnecessary risk. Continuous monitoring allows companies that extend trade credit to respond to positive or negative financial developments.
Compliance Platforms
Third-party tools offer visibility into a company’s management, associates, and corporate connections to identify potential problems, including concerns around money laundering, politically exposed persons, and forced labor.
Anti-Virus Software
Network security is a must for businesses. There’s simply too much at stake – from customer data to proprietary information about products and performance. A successful cyberattack can also expose a business to lawsuits and reputational damage. Anti-virus software is the first line of defense against such risks.
Business Insurance
Purchasing the appropriate amount of insurance protection can help a company weather the storm when something does go wrong. No mitigation strategy can protect against all risks, but business insurance may be the difference between survival and bankruptcy. Business interruption insurance is particularly important, as it can be used to replace lost earnings due to covered events such as fires or floods. Standard business insurance policies don’t take these damages into account.
Enterprise Risk Management is a Constant Concern
Businesses are never done managing risk; they must monitor their processes and protections to make sure that what worked yesterday is still effective today. The nature of threats facing companies is also bound to change alongside technology, the economic climate and environmental factors. Those tasked with managing enterprise risks cannot rest on their laurels, but must remain vigilant against new and evolving challenges.
Learn more about enterprise risk management in the articles below.
Financial & Credit Risk
Learn about financial and credit risks and how data enables companies to more accurately assess the threat posed by other businesses.
What Is Business Risk?
Business Credit Risk Management
Guide to Cash Flow and Cash Flow Management
What Your Need to Know About Business Bankruptcies in the US
How to Prioritize Accounts Receivable Collections
Accounts Receivable Turnover
How to Protect Against Business Identity Theft
Protecting Your Business from Bad Debt
Strategies for a More Effective Collections Policy
What is an Order to Cash Process?
Automation in Risk Management for Finance Organizations
Accounts Receivable Management
Beginner’s Guide to Accounts Receivable Automation
Operational Risks
Economic downturns, supplier and customer failure & political instability can all interfere with a business's ability to survive.
Managing Business Interruption Risks
Preventing Employee Theft & Fraud
Cybersecurity Risk Management
Compliance Risks
Running afoul of anti-bribery anti-corruption (ABAC) and anti-money laundering (AML) laws, tax rules, and other regulations can expose companies to penalties or prosecution.
Foreign Corrupt Practices Act Compliance
Regulatory Compliance Risk Management
There are multiple Contact Forms popups in the page. Only one Contact Form popup could be present on single page. Please reconfigure Contact Forms and refresh the page.