The premise in the Risk Management is that organizations exist in order to generate value for their interest groups. All organizations face the absence of certainty and the challenge for their management is to determine how much uncertainty can be accepted while they make an effort to increase values for their interest groups.
Uncertainty implies risks and opportunities and has the potential to erode or to increase values. Risk Management allows management to effectively treat the associated uncertainty and its risks and opportunities, therefore improving the ability to generate value.
The value is maximized when management establishes a strategy and objectives to find an optimal balance between growth and yield objectives and associated risks, in addition to effectively and efficiently implementing resources in order to obtain the organizationīs objectives.
At BDO, we assist our clients to identify and to manage risks that can adversely affect their ability to reach their objectives.
