Why Risk Management and Due Diligence Has Become Important
The economic volatility that has been witnessed in the recent past has impacted the way modern companies are managed. Most of the companies that have in the past been run on the basis of projections and forecasts are finding that this is no longer practical;there seems to be renewed interest and focus on the subject of risk. Risk is a major cause of uncertainty in companies. That is why modern companies are now making concerted efforts to identify and manage risks before they begin to have impact on their business.
The ability to successfully manage risk gives an organization confidence during making important business decisions.
A thorough understanding of the risks that an organization will most likely face in its operations helps it to adequately prepare against all potential challenges that may arise in the course of running the business.