Free Trial

Safari Books Online is a digital library providing on-demand subscription access to thousands of learning resources.

Share this Page URL
Help

The risk management process cycle > The risk management process cycle - Pg. 112

112 The New CFOs story. So far in this chapter we have examined how risk relates to control and why CFOs and other finance professionals are often challenged to manage enterprise risk holistically. It's a large undertaking and not just for the CFO and the finance team. One way to embed an appropriate risk man- agement mindset is to take a consistent and disciplined approach that is visible to everyone. Risk and resilience An effective risk mindset looks at both risk and resilience, as two halves of the same issue. Risk is what might happen, the `potential unwanted negative consequences from events'. Resilience is what you can do about it, the ability to withstand and recover from those events. In practical terms, proactive risk management involves four sets of activities. The first is to identify risks by understanding what could go wrong. The second is to look for ways of preventing things going wrong. The third is risk mitigation through minimiz- ing the negative consequences of things that have gone wrong. Finally, risk recovery means having plans and procedures to pick yourself up again when