Most of us are in the process of planning for 2020. Designing audit coverage, developing risk management plans or even establishing strategic focus for the coming year.
As part of that process we are inundated with articles talking about the top 10 risks of 2020, the most significant 20 risks of 2020 or even the gap between audit coverage and business objectives for 2020. While each of these article are informative and bring value they omit one very important factor. In fact, we all omit that factor in our personal analysis of risks as well.
Simply stated, risks are interrelated. In fact, there is no stand-alone risk. Each risk listed in the aforementioned articles is impacted by or impacts the other risks. Yet each of those articles is silent on that relationship. They should not be!
Risk Assessments, and this is one of the several inherent weaknesses of risk assessments, do not include the interrelationship between risks as part of the assessment either. They should!
So as you plan for 2020 don’t fall victim to conventional thinking. Look for the inter-related impacts of risks so that your strategies are complete, risk plans are holistic and audit coverage is comprehensive.
If you would like to learn more about how risks are related and what that means to your organization check out BEXCPARNTERS S.C.