Melissa Allen, UK head of risk consulting at KPMG in the UK, discusses how using the right tools can turn risk into a competitive advantage.
Before the financial crash, the business landscape looked very different: returns were high, regulation was light and competition was more predictable. Today, that has completely changed.
Reduced returns mean companies have to take more risks than ever to get the returns they need. There is also increasing political and regulatory pressure on companies, which has pushed compliance up the priority list and unheard-of levels of disruption are at play in almost every market. As a result, innovation is no longer a ‘nice-to-have’ – it’s a condition of survival.
All this means risk has gone from being a hygiene factor at the periphery, to being a central consideration of business strategy.
Melissa Allen, Head of Risk Consulting at KPMG in the UK, discusses how the risk environment has changed and how companies can turn these risks from a negative into a positive source of competitive advantage.