One of your most important tasks as a business leader and manager is mitigating risk. Understanding what kind of risk exists, planning for the impact of this risk, and executing continuity plans to keep the organization operational during a disruption is of paramount importance. The earlier risk can be identified, assessed, managed, and integrated into strategic planning, the better.
Typically, this burden falls on the C-Suite, but leaders at all levels should be included in the planning stage to ensure buy-in across the company. According to CFO Magazine, CFOs have seen risk management fall under their umbrella more over the last decade. They explain,
“The CFO’s role has expanded in recent years, perhaps most notably in the area of risk management. Finance chiefs frequently took charge of assessing and guarding against risk during the financial crisis, and as the economy has slowly recovered, few have relinquished the task. More than half of the finance executives responding to CFO’s latest Deep Dive Survey say their responsibility for risk management has increased.”
Not much has changed in the years since, with CFOs taking more ownership of risk than ever before, whether they want to spearhead this role or not.
While it is easy to task an individual with overseeing risk management, ideally, it should not roll up to a single person. An emphasis on risk mitigation should be ingrained across the organization with alignment and compliance at every level. CFOs leading the charge can get their organizations on board to share the responsibility by taking a four-step approach to business continuity planning.