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Member, Beacon International Group, Ltd.
MARKETING RISK
Most organizations have a chief marketing officer who manages risk factors related to entering markets, finding customers/clients, and pricing and selling goods or services. Examples of exposures include:
Needs risk. Understanding what customers will buy.
Distribution risk. Getting the products to market.
Volume risk. Selling sufficient units.
FINANCE RISK
Most organizations have a chief financial officer who manages financial decisions and controls. Underlying exposures include:
Capital budgeting risk. Investing to earn an adequate return on assets.
Valuation risk. Protecting or increasing the value of a firm.
Capital structure risk. Managing the sources of funding for the firm.
Credit risk. Obtaining the value expected from business transactions.
Financial reporting risk. Ensuring accurate financial statements.
TECHNOLOGY RISK
Many organizations have a chief technology officer who identifies risk factors and influences others to respond to changing telecommunications, data management, business systems and other technological developments. Exposures include:
Business support risk. Providing technology for production and marketing.
Information systems risk. Responsive information on products, markets and finances.
Communications risk. Effective systems for linking all parties.
Records management risk. Accurate and timely data collection.
ADMINISTRATION RISK
A chief administrative, operating officer or CEO manages ordinary operations risks. Issues include:
Efficiency. Organizing work in cost-effective processes that achieve goals.
Performance. Ensuring achievement of leadership, management and behavioral objectives.
Structure. Pursuing optimal hierarchical and other relationships.
An expanded list of risk subcategories can be viewed at www.BusinessInsurance.com/EmergingRiskStrategies