Managing Enterprise Risk Management in a Declining Economy
With the market down around 40% from this same date last year, businesses are shutting doors all over the place. The credit crunch is making it nearly impossible to get (or increase) lines of credit, which really hurts companies that are trying to expand, or simply keep from shutting their doors permanently. Despite the tough circumstances businesses are facing, it’s important to continue managing risk. Every business faces risk - some more than others. Managing this through enterprise risk management can help businesses determine what decisions are worthwhile while which ones may best be passed during these tough economic times. Many companies have Chief Risk Officers or Chief Financial Officers that make decisions that can help companies expand and grow while minimizing risk to the company. Some key ares of risk management can include marketing, credit, operations management, customer service, and more. Document retention is another area of risk management - see my previous post on that, which outlines how long it’s recommended businesses keep certain documents. Effectively managing risk can help businesses keep functioning in today’s tough economy.
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