Successful business leaders don’t simply accept risk; they actively manage it. This demands a preventative approach, including taking precautions that reduce risks. Companies should ask themselves key questions on risk and opportunity management:
- What risks are we exposed to?
- How much of a threat do these risks pose for us and what is the potential extent of damage?
- What is the potential of opportunities identified?
- What opportunities could we currently exploit?
Accounting law provides for disclosures to be made in the management report regarding the performance of a risk assessment. The requirement depends on the legal form of the company and applies to companies or entities that are subject to a statutory audit. To protect public interests, the legislator wants to ensure that listed companies and any organisations of material significance for the economy regularly observe and analyse risks in their business environment.
BDO advises boards of directors and company management on how to take a future-oriented and systematic view of existing company risks. We help you identify opportunities and risks in your operating environment and assist you in implementing measures.