Risk management is a competitive advantage for private companies, says PwC

    Effective risk management can help private companies grow on solid

    TORONTO, June 11 /CNW/ - In the current economic environment, sound risk
management has become a key focus and necessity for private companies. Indeed,
according to a new article from PricewaterhouseCoopers (PwC), having a risk
management system is vital to ensuring that all stakeholders in the
organization are on the same page and in helping to take advantage of new
opportunities, such as expanding the business overseas to addressing climate

      - Risk management provides in-depth awareness and analysis to help
        private companies achieve their business goals

      - In the post-recession landscape, risk management will likely play a
        much bigger role in business success

      - Without a sound risk management process in place private companies
        could be at a competitive disadvantage

    "A risk management system gives companies contingency plans to deal with
sudden risks such as a market downturn or the loss of a major client," says
Mike Harris, leader of PwC's Canadian Corporate Governance practice. "But it
also provides them with the strategy and methods to carefully assess the risks
involved in taking new opportunities and plotting their course with the
confidence of knowing they are prepared to deal with these risks."
    According to Harris, risk management is not just about avoiding or
mitigating risk, but also managing it. To help private companies implement an
effective risk management system, Harris offers the following tips:

      -  Take a very honest and thorough look at your company. Decide on your
         risk appetite and know the key risks you should be looking at.
         Ensure that your plans for dealing with risks - from major issues to
         new sales or growth opportunities - are aligned with your strategic
         plan or objectives as a company.

      -  Identify your true unique risks - don't rely on standard formulas.
         Every industry has its specific top risks, and every company within
         those industries also has its own unique risks based on its culture,
         maturity, place in the market, etc. Find your concealed risks, such
         as compensation based strictly on gain without factoring in loss.
         Expand your outlook and data to be more forward-looking.

      -  Weave your risk management process throughout your company. Risk
         management starts at the top of the company, but, overall, it is a
         team effort. Your risk management strategy should be integrated
         throughout the company with clear communication. Make sure you have
         the right people, mechanisms, culture and technology in place.

      -  Don't leave for tomorrow what can save you today. Many companies are
         in survival mode to manage through the current environment and are
         not thinking ahead. Harris suggests, "If cash flow is paramount
         right now, that is probably your greatest risk and you should be
         focused on it. However, develop a plan for when you get through the
         credit crunch - don't be caught one step behind your competitors."

    The full article can be found in the "Let's Talk About" section at
http://www.pwc.com/ca/pcs. This series of articles from PwC's Private Company
Services group helps business owners think about topical issues and
opportunities that can affect the performance of their business.
    For more information on managing in a downturn, visit

    About PricewaterhouseCoopers LLP

    PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance,
tax and advisory services to build public trust and enhance value for its
clients and their stakeholders. More than 155,000 people in 153 countries
across our network share their thinking, experience and solutions to develop
fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP
(www.pwc.com/ca) and its related entities have more than 5,200 partners and
staff in offices across the country.

    "PricewaterhouseCoopers" refers to PricewaterhouseCoopers LLP, an Ontario
limited liability partnership, or, as the context requires, the
PricewaterhouseCoopers global network or other member firms of the network,
each of which is a separate and independent legal entity.

For further information:

For further information: Nina Godard, (416) 941-8383 ext. 13520,
nina.godard@ca.pwc.com; Carolyn Forest, (416) 986-2316,

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890