Risks are everywhere – but the big issue is how rigorously organisations assess, control and finance them.

There is no question that those that manage their risks better than others enjoy a significant competitive advantage.

Put simply, they have a much better chance of reaching their business objectives. They can also enjoy better relationships with stakeholder groups – many of which are applying more scrutiny to business behaviour and are less tolerant of mistakes.

Such organisations are also in a superior position to take calculated risks, due to their greater knowledge of where hazards and opportunities lie. This is a much-needed competence in today's fast-moving marketplace.

Risk management therefore makes good business sense. The benefits are numerous. Managers can make better investments, protect these investments more confidently, and have a better chance of meeting strategic objectives.

Risk management is also imperative because transferring risk to the insurance marketplace is not always an available, cheap or best option.

Organisations that manage risk well enjoy a ‘virtuous circle’ when it comes to relationships with underwriters. By controlling risks and reducing costs, they can enjoy discounts on their premiums and cope better in a hard insurance market.

Being more in control of their risks gives our clients the confidence to make decisions with less chance of unwanted surprises.