How do you conduct an enterprise risk assessment in the USA?
The era of globalization has established an unbreakable connection across the different countries of the world to such an extent that any change happening in one part of the country is likely to affect the enterprises in the other part of the country. Therefore, the enterprises which are functioning in the countries consider it as their foremost duty to be vigilant enough to access the externalizes to themselves. As a part of this process, the country of the United States of America is realistic towards the importance of studying the external environment of every enterprise. This analysis of the external environment helps an enterprise to access the future possibilities and the contingencies which may or may not be detrimental to the business. The USA has been one of the few countries in the world which have been sympathetic towards the need for encouraging assessments that analyze the opportunities and risks for an enterprise. This study is broadly referred to as an enterprise risk assessment. This article describes this process in the context of the United States of America.
What is Enterprise risk Assessment?
This is one of the most essential business strategies. This strategy revolves around the process to take note of all the happenings in the environment external to any business or an enterprise for the purpose of estimating its effect on the enterprise itself. The process identifies and recognizes the potential risks which have the caliber to affect the business enterprise and hinder its functioning for the worse. The process of risk assessment tries to assess the risks and at the same time tries to prepare the enterprise to face the worst. This is helpful in keeping the enterprise prepared to put up a tough front against whatever hinders its performance.
Enterprise Risk Assessment Strategy In the USA.
The companies in the country of the United States of America are very vigilant towards the changes which have been happening in the external environment. For this, they take a number of factors into accord. These factors have been summarized as follows:
- Technology- The most dynamic factor to which the future of every business organization is prone is Technology. This is ever-changing and evolving. The companies keep a check on the latest technology which is developing in the marketplace so that they can accommodate these changes in the best possible manner.
- Capital Markets- The companies over the period of years study the market structure in order to understand the process and the related trends which are associated with the marketplace. This helps them to foretell in a limited context about future possibilities and accordingly prepare themselves.
- Consumer Preference- For every kind of business, the most important player is the customer. It is because of him that the entire business functions. Therefore the satisfaction of the customer matters to the utmost extent. The companies keep an eye on the ever-evolving customer preferences over the period of time. This helps them to ensure that the products and the service which they deal in customized according to the needs and preferences of the customer. This ultimately helps in boosting the sales of the enterprise.
- Raw materials- The companies also keep an eye on the raw materials which are used by them. They ensure that the prices are kept stable by regulating the chains of demand and supply to the maximum possible extent.
- Business Analysts- The companies in the United States of America make the use of specialized services which are very helpful to analyze the market trends and understand the risks which are coming in the way. They help to prepare the company so that it is having the capacity to face any storm.
Therefore, with these tools and instruments, the companies in the United States of America are doing wonders by trying to assess every possible risk in their ways. A recent survey by McKinsey revealed that nearly 99 percent of the companies make the use of these tools and it has an efficiency ratio of 84.5 percent. As none is capable of witnessing the future, however, these tools help to mitigate the risk factor which might be faced by the companies in the absence of these safeguards.