Why do Companies Need a Risk Management Strategy?
Every company is exposed to the risk of financial loss, with the latter being directly proportional to the dimension of the corporate entity. The causes of financial loss are market volatility and regulatory changes, but also mistakes in corporate decision-making or inadequate execution of policy. Whatever the cause, if sufficient preventative measures are not put in place, risk can become reality with potentially weighty consequences on the company’s financial statement, projects and reputation. An integrated strategy is more effective in avoiding this kind of scenario than single, generalised initiatives. Planning a Risk Management strategy is a way to identify all the possible risks, classifying them according to type and dimension, and to ensure one is never unprepared. To this end, it is beneficial to turn to the experience of a company like Enel X which offers a Risk Management consultancy service, with a particular focus on the energy sector. This is how risk management and prevention become a source of efficiency and optimisation.