Uncontrolled risks can severely affect a company’s results:
Resources are used ineffectively, resulting in shortages of funds
Theft or unintentional errors, resulting in loss of assets
Unreliable financial and operational reports, resulting in poor decision-making
Non-compliance with laws or regulations, resulting in penalties or reputational damage
Ineffective operations, resulting in loss of customers or negative publicity
Risks must be controlled!
Qs: If we do not control risks, what could go wrong?
When we are analyzing risks, we always think “What could go wrong”?
We then figure out how to prevent it from happening