Twenty-first century businesses worldwide operate in an environment where forces - such as globalization, technology, the Internet, deregulation, restructurings and changing consumer expectations - are creating much uncertainty and prodigious risks. Consider, for example, that no force is having as great an impact on business today as the Internet. And as the Internet evolves, companies in all industries are rethinking the basics: business models, core strategies and target customer bases.
These new developments create new issues related to risk and risk management. Managing risk on an integrated and enterprise-wide basis is a vital issue confronting executives, with the CFO a key decision-maker in crafting the company's strategy. "I think the point to risk management is not to try and operate your business in a risk-free environment. It's to tip the scale to your advantage. So it becomes strategic rather than just defensive," observed Peter Cox, chief financial officer of United Grain Growers Ltd.
