18. Business Risk: “ The level of exposure to uncertainties that the enterprise must understand and effectively manage as it achieves its objectives and creates value ” An EWRM Approach Needs a Context
19. Categories of Business Risks ENVIRONMENT RISK PROCESS RISK INFORMATION FOR DECISION-MAKING RISK Sources of Uncertainty Uncertainties affecting the viability of our business model Uncertainties affecting the execution of our business model Uncertainties over the relevance and reliability of information that supports our value-creation decisions
21. Sources and Mitigation of Risk Risk Area Sources of Risk Risk Mitigating Activities Credit Risk Market Risk Operational Risk Reputational Risk Financial Risk Other Risks
22. BUSINESS STRATEGY BARRIERS TO SUCCESS BUSINESS RISKS Business Risk Source: SGV & Co., 2006 WHAT WILL NOT ALLOW US TO SUCCEED ? CHANGES IN EXTERNAL ENVIRONMENT