Risk as a value generator
July 2018
Optimizing risk-based decision-making using a “Total Cost of Risk” approach

Boards and investors of leading corporations are now taking more active and questioning positions on risk management. Striking a balance between the potential opportunities unlocked by appropriate risk-taking and potential losses requires expertise and a clear risk management strategy that is aligned with broader business objectives. Our experience shows organizations often underestimate critical business and operational risks by over-reliance on experience and overconfidence in ability to mitigate. More robust risk management generates value, prevents unforeseen losses and creates significant savings (e.g. insurance). This requires deep operational experience, a clear, tailored approach to calculating the Total Cost of Risk (TCOR), new approaches to business resilience and insurance market knowledge.

Arthur D. Little’s capabilities are founded on our team’s deep operational experience and industry insight, allowing us to help you make sense of technical risk analysis to strengthen financial and operational performance