Strategic Risk
Our concept of Strategic Risk is the provision of risk management services as part of a strategic review or option assessment. Risk management techniques provide an effective mechanism for developing robust strategies across a range of business activities. An approach of this nature can differ quite significantly from normal options appraisal, but it does require director level interaction to insure buy-in throughout the organisation.
The heart of Strategic Risk is the capture of information about the organisation and its operations. This includes the company's aims and objectives. Once the information has been captured it must be organised and the risks associated with each part thoroughly assessed. When the risks have been assessed, work can begin on planning the management of the risks. This often leads to a fresh approach to strategic planning within the organisation.
Strategic Risk involves matching vision and strategic objectives with current and future operational constraints. It is necessary to begin with a top-down approach by questioning the realism of the organisation's vision, aims and objectives. These need to be served by the strategy, the means by which the organisation sets out to achieve its vision, aims and objectives. This in turn needs to reflect and be reflected by its operational activities. The operational activities are in turn subject to many constraints. The commissioning of new operational activities or facilities involves particularly difficult inter-relationships. The result of the whole is a multi-dimensional problem, the extent of which is difficult to comprehend without a structured risk-based approach.