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Strategy, Governance and Risk Management – key ingredients to business success.

Strategy, Governance and Risk Management – key ingredients to business success.

If you want to make a successful recipe you need the right ingredients, in the right combination, added at the right time… the same is true for business.

3 essential ingredients for business success are:

  • -         Strategy;
  • -         Governance; and
  • -         Risk Management.

Business success starts with strategy – you have to know where you are going, and what you want to achieve before you go anywhere.  Much has been said, and written about strategy –from its design to its implementation, suffice to say strategy is all about “looking forward” – keeping ones eyes on the goal –and then moving systematically towards it.

Implementation of strategy has to take a number of different things into account – environment, decision making, employees, supplier relations, customer interactions (I could go on). Good corporate governance is about implementing strategy in such a way that maintains the tension between moving towards one’s desired objective and the daily management of all business processes and procedures - keeping all these factors in their proper place.

Risk Management is an integral part of both Strategy and Governance. In the same way that you would not (or should not) climb a cliff face without ropes and anchors, or ride a motorcycle without a helmet designing and implementing corporate strategy and corporate governance without assessing, accommodating and adjusting to the risks could be fatal for the business. Risk Management starts with trying to better understand the risks you will encounter – mapping these out in terms of potential harm done, monitoring any change in the risk environment and continually adjusting both strategy and governance to these risks. It is a dynamic daily part of running a business.

So like cooking a meal from a recipe in your business you need to start with a “picture” of what you want to achieve, ensure that right combination (at the right time) of all the ingredients –and ensure that at every step of the way what you are doing is moving you closer to the desired goal.

For more information on Corporate Strategy, Corporate Governance and Risk Management in your business contact