Question

What Are The Company’s Top Risks, How Severe Is Their Impact And How Likely Are They To Occur?​

Answer 1

Managing enterprise risk at a strategic level requires focus, meaning generally emphasizing no more than five to 10 risks. Day-to-day risks are an ongoing operating responsibility.

Answer 2

The company's top risks are :

1. Compliance risk: These risks are likely to happen due to the exposure to penalties, fines, or material loss. Sometimes these penalties can be in huge amounts and can impact the earning capacity of the company. Thus, the compliance officers must ensure that all the compliances are met on time.
2. Operational risk: These risks are caused when there are flaws in the systems, new policies, or failed processes. These risks can lead to high losses for the companies. Therefore the proper analysis is necessary before implementing any of the operations.
3. Reputational risk: Reputational risks are those types of risks that occur due to the inability to meet the expectations of the shareholders. There would be a great downfall of the goodwill. This impacts the customer base. This risk can be minimized only by meeting the expectations of the public and offering good returns on their investment.
4. Financial risk:  Financial risks can impact the government along with the companies, ex- their monetary policy fails or they are not able to control inflation. These risks can be controlled through cash flow management.
5. Security and fraud risk: These risks lead to money laundering, intellectual property theft, criminal records, etc. A company is required to be rigorous while employing new talents and must ensure they have adequate knowledge to tackle the problem.

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