Risk and resilience

Organisations that can understand and manage their risks effectively are better placed to grow, confident they can withstand known and unexpected risks alike.

 

Managing risk and building resilience

In an increasingly interconnected, volatile and uncertain world, it’s clear that the risk landscape is changing. Both the speed at which risk events occur and the extent to which they spread have risen dramatically. Risks that once seemed improbable and even remote have also become the norm. Business leaders everywhere must now ‘expect the unexpected’.

To navigate through turbulent times, companies need to develop a new trait: resilience. This combines the ability to ride out the immediate impact of shocks with the agility to adapt to constantly changing conditions. Organisations that can understand and manage their risks effectively are better placed to grow, confident they can withstand known and unexpected risks alike.

An increasing number of businesses are now focusing on risk resilience as well as risk management. They are exploring new ways of managing unpredictable threats, including collaborating more closely with governments, changing their remuneration schemes to encourage more risk-aware behaviour and breaking down internal barriers to ensure a holistic organisational response to risk.

Many companies are also using scenario planning to get a better understanding of global risks. And they are adopting new processes and incentives to help close the gap between their strategic and operational risk approaches, and foster a risk-aware culture.

 

The uncertainty advantage

 

Creative leaders don't fear risk - they turn it into a money-making strategy.

Read the article in strategy+business

Cracking the corporate governance code - How ready are Hong Kong listed companies in meeting new requirements?

Hong Kong's Corporate Governance (CG) Code requirements are changing. Due to changes adopted by Hong Kong Exchanges and Clearing Limited in December 2014, listed companies face new requirements in the areas of risk management and internal controls.

In order to understand the state of Hong Kong listed companies' adoption of new CG Code requirements, PwC studied corporate governance reports of 230 companies in the Hang Seng Index and Hang Seng Chinese Enterprises Index, as well as in four sectors: financial services, real estate, retail and technology.

Read our report

2017 State of the Internal Audit Profession Study

Despite strong ambition from Chief Audit Executives to grow their value to the organization, PwC’s 2017 State of the Internal Audit Profession study shows Internal Audit is losing ground in trying to keep pace with stakeholder expectations. In the five years we have been tracking this sentiment, 2017 represented the lowest stakeholder perception of Internal Audit value. 

Stakeholders, however, remain committed to wanting Internal Audit to play a greater and more value-added role.  While few (7%) consider Internal Audit to be a trusted advisor today, nearly half (48%) want Internal Audit to be a trusted advisor to the business within the next five years.

More from the study

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Yvonne Chan
Director, Marketing & Communications
Tel: +[852] 2289 8733
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