Strategic risk management is an important aspect of the protection of an organization’s resources. The article highlights that it’s very important to have strategic risk management since we don’t know the time risk may occur. This has been a big gap left for a big while by corporations and its now time that they put a lot of resources and time for strategic risk management to avoid getting to losses. This can only e achieved if the top management is willing to take correct interventions to save the organization from emerging issues. The best way of solving the situations is by the use of actions and decisions of line management which can be used in protection from the excessive risk in the organizations. The top management is entitled to develop the strategies that will help in curbing the gap between them and the ground employees. They are supposed to analyze the risk that the subordinate staff are providing in the risk list. This will offer a better chance of critically coming up with solutions to mitigate them. In the article, the writer gives steps that the CFOs should use so as to improve strategic risk management: Building a link between the business planning process and the risk management to develop a good integration that will synchronize all the process In the business plan into one; Organize the corporate discussions that are geared to the development of the strategic plan of risk management; Another step is for CFOs to communicate on investment and strategic decisions using the risk analytics, they are supposed to come up with decisions that are based on the facts derived from the risk analytics. This will then guide the top management on the appropriate action to take.
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