The time to gamble on a strategy isn’t now. Know your risks and plan to mitigate them with the CCH Tagetik Smart NOW Risk Adjusted Planning App. Read the blog now!
During this period of crisis, worst case scenarios seem ever so close to reality. To keep the lights on and staff employed, the pandemic is forcing organizations to take drastic actions to bring more cash in and halt cash out. From one day to the next, many have to re-plan operations, supply chains, IT, workforce, and communications.
Executives gather 'round the virtual boardroom, making some of the most significant ad hoc strategic decisions they've ever had to make. Their ability to qualify each risk in a thorough, timely manner is dependent on the ERP and CPM systems they have at their disposal. Therein lies the problem. Many of these systems lack the data intelligence, processing, and depth required to measure risk, let alone mitigate, transfer, avoid, or accept the risk. Something’s gotta give.
The Biggest Challenges to Effective Risk Management
Accounting for Risk in Standalone Plans: Many organizations don't inherently build risk identification into strategic or operational plans — not that you'd reasonably assume a pandemic would be on the horizon.
Siloed Risk Responses: Fragmented approaches to risk result in a fragmented approach to risk management. This results in an environment where it's every department for themselves. No cohesion, no unified response. A decentralized, remote workforce exacerbates this problem as the tribulations of working from home impact collaboration.
Weighing the Probability of Risk: How likely is a risk to become a reality? This is the golden question. Without the ability to weigh the probability of a risk, all risks are measured equally, even though some scenarios are far more likely than others.
In a historical moment where consequences are magnified and resounding, understanding your decisions' risk profile has never been more critical. That's why we developed the CCH Tagetik Smart NOW App for Risk Adjusted Planning.
The App in a Nutshell
CCH Tagetik Risk Adjusted Planning helps you weigh the probability, consequences, and rewards of risks —fast.
Plans and risk are two sides of the same coin. And yet, the problem with many approaches to risk management is that risk planning and strategic planning are treated as separate, siloed processes. Our app brings the two together. You can measure and quantify the potential risk costs, and you can use pre-packaged intelligence to depict your risk exposure, probability, and volatility.