How would you navigate a situation where external market factors significantly increase your risk exposure?

To manage risks heightened by external market factors, assess the threat landscape using industry reports and expert opinions. Revisit risk management plans and consider potential responses like cost-cutting, price adjustments, product diversification, strategic partnerships, and business continuity measures. Take action and communicate with stakeholders about increased risk exposure. Continuously monitor the situation and adapt your approach as needed. Additional tips include stress testing, portfolio diversification, and building a strong risk management culture to minimize threats and ensure long-term organizational resilience.

Importantly, risks are almost inherently unseen. Once they are known, the risk itself diminishes. If we are honest, we must concede that most of the market-shaking events of the past were based on events we did not really see coming. There is no crystal ball. Risk is a forward-looking assessment and as such, requires constant evaluation. Investors should always maintain a portfolio that reflects their own personal risk tolerance and objectives, adapting in small increments along the way. Making all-or-nothing decisions is never advisable.

With external market factors ramping up , it’s time to get proactive. Start with a thorough risk assessment to pinpoint and measure the new threats. Diversify your investments and operations to spread the risk. Boost your monitoring and forecasting to stay on top of market trends. Keep stakeholders in the loop and focus on building resilience. Look into strategic partnerships or alliances for extra stability. This way, your organization stays agile and ready to handle whatever the market throws your way.

Ask Chat GPT. It’s evident everyone else has.

Build your depth in your Strategy & Risk, as well as in your Commercial departments In addition, Robust and structured compulsory executive and GM development programs As well as robust learning and knowledge management programs across the company, with dedicated champions

Assessing current market conditions may be a sign of a limited perspective as current assessment is a byproduct of processes that have already happened.

Updating risk management plan is a crucial step in responding to changing market conditions. Ensure that; 1. It remains relevant and effective 2. Address new risks and opportunities 3. Adjust your strategy to align with shifting market conditions 4. Maintain a flexible and adaptive approach 5. Stay focused on your long-term vision while navigating short-term challenges A dynamic risk management plan should include: 1. Current risk assessment and prioritization 2. Contingency plans for potential scenarios 3. Adjusted business objectives and key performance indicators (KPIs) 4. Reallocated investments and resources 5. Revised timelines and milestones 6. Clear communication and decision-making processes 7. Regular review and update schedule

Periodic reviews and updates if the external/global impact is critical and proportionately relatable. Periodic analysis and update on the performance/projects.

Views are personal and not associated with any organisation or any event! However the updated plans needs to be monitored on continuous basis to evaluate that how much the new strategy is achieving the long term vision!

Following a risk management approach, I would first identify these external market factors increasing risk exposure. I would then determine the likelihood and the impact of these factors. Thereafter, I'd evaluate current controls to determine if they would mitigate associated risks, as well as reviewing current risk management strategies to ensure these external market factors are taken into consideration

éliminer et /ou réduire les facteurs de marché externe qui expose l'entreprise directement au risque surtout ceux qui sont important ou leur impact affecte directement la pérennité de l'entreprise.

In my opinion, when external risks arise, we should hold our cash and focus on our main business. Asset diversification can be carried out if you have strong cash flow reserves.

While diversification is very important, it’s equally important to ensure you do not diversify too much and spread yourself too thin. Perform a thorough analysis, if the diversification is actually aligned with your business needs and not otherwise

Disversifivation is the most important part of investment. Many time we will feel in bull run or bear run to select particular assest class but it is very important to make proper deversification to medicate risk. Always prefer to have emergency fund intact to keep safe your long term investment plan intact!

I would argue that no market factor is “external” hence why companies are often unprepared for the “Black Swan” event. If your risk team treats an event as “external” in so much as it has an ability to affect the market - it’s not external. To quote a fellow Northeast Ohioan - “When making bets on a beauty contest, don’t judge the contestants, judge the judges.”

Establishing and testing a communication plan on a regular basis should be a cornerstone for every company. Communication needs to be clear, actionable, and consistent. Ongoing consistent communication allows internal teams and external stakeholders to have a common understanding and framework that enables understanding and facilitates the actions that mitigate the identified risk.

When facing a problem or issue, it's important to be transparent and proactive in your communication. Don't wait for the issue to escalate or for stakeholders to find out on their own. Get ahead of the situation by providing timely updates.

One way to reduce external risk may be through partnership. Maybe share sales channels, equipment or even employees. Does the risk reduction percentage equate to the number of partners? Probably not! Must be an optimal number, need to think about how to calculate that!

Increased risk exposure from external market factors necessitates heightened stakeholder awareness. For instance, during April 2021, the crude oil market experienced unprecedented negative prices, highlighting the need for clear, transparent communication. By regularly updating senior leadership on the potential impacts and our team’s mitigation strategies, we as an organization built trust and ensured alignment. Keeping senior leadership, particularly the CEO and CCO, informed was critical to managing the P&L and cash flows we depended on.

Continuous risk monitoring is crucial for maintaining operational integrity and ensuring regulatory compliance. This can be efficiently managed by integrating tools/systems designed for cybersecurity monitoring, and compliance oversight. it enhances the ability to respond swiftly to emerging threats. Assessing risk involves a systematic process to identify, analyze, and manage potential risks that could adversely impact an organization's operations or objectives.

It’s easy to put a control in place but it’s very important to ensure that the control is actually working in a sustained manner. If it doesn’t, it won’t mitigate the risk.So monitoring is more important than implementing a control that would protect the organization from risks

We have to live with a continuos risk monitoring measures, specially introduce that activity as a standard not only when the stress situation apparently justify the instauration more on those situations with no specifics dangers known ahead of us

Risk assessment is regular process not a monthly or weekly or yearly practice. It is 24/7 process . So checking sop regarly can help to reduce risk to great extent. Built a strong audit/compliance team !!

One thing I've found helpful is the monitoring cycle : analyze, plan, execute, evaluate...and repeat the cycle again. That's how a business can survive for a long time

One thing I have found helpful is that learning from past experiences is the best teacher for the future. This will assist in refining your risk management practices.

Risk management involves anticipating and addressing potential threats as they arise, acknowledging that surprises can happen anytime. It's about staying flexible, learning and adapting quickly. Once you spot a risk, dealing with it becomes easier with the support of experts and international standards. Yet, the trickiest risks are the ones that sneak up on you when you least expect it.

Straightforward things of note (my personal list): - Conduct thorough post-event reviews to analyze risk management effectiveness - Identify strengths and areas for improvement in processes and strategies - Gather insights from diverse stakeholders involved in the response efforts - Implement process enhancements based on key learnings from the experience - Foster an organizational culture of knowledge sharing and continuous improvement - Remain agile and open to adapting risk management approaches as landscapes evolve

Learn and Adapt: Embracing change is often challenging, yet it is crucial for effective risk management. Study leading companies within your sector that have navigated unique risks, and develop strategies based on their experiences to enhance your capability to manage similar risks should they arise.

learning from each situation where external market factors increase your risk exposure is crucial. Compare your organization’s risk exposure to similar organizations or those in the same industry to identify gaps and best practices. Look back at how you managed the risk, what worked well, and what could have been done better. Use these insights to refine your risk management processes for the future. Adaptation is key; it ensures that with every challenge faced, your ability to manage risk becomes more robust. Embrace each experience as an opportunity to grow stronger in the face of uncertainty.

From my perspective, it is important to take a proactive and strategic approach, when faced with a situation, where external market factors significantly increases the risk factors. This includes development of contingency plans to mitigate the identified risks and their potential impact on your organization. Identification of alternate strategies, diversified offerings or adjusting your business model to adapt to the changing circumstances are important factors to navigate through faced challenges.

Risk Sharing Networks Risk assessment ends where your business is impacted, but to increase mitigation probabilities, you must go beyond that. Relate the outcomes other parties could have if risks become a reality For risks in commom, gather actions for stronger solutions For risks owned solely by you, a closer relationship could provide solutions through trade, for example, such as transferring risks to third partie For instance, in case of closed roads, you could arrange with a supplier to deliver at a smaller backup warehouse (more frequently). The third party benefits from better conditions in inbound processes or can use your transportation resources when triggered for some especific issues. Anyway, thats... HANDS ON ou HEADS OUT

One thing i have found helpful is employing a risk expert and or capacity building existing staff members on risk management