Anticipatory Risk Management

Abstract

Anticipatory Risk Management may be defined as a permanent orientation toward understanding and embracing future risk, generating mitigation strategies to address those risks, and integrating them into the planning, operation, and risk management functions of a business. So often businesses are focused on the short term (i.e. the competition, consumers, and profits). ARM requires that the orientation toward the medium- and long-term future must be permanent, strategies to mitigate them be realistic and achievable, and their integration into the core functions of a business be seamless. Thinking about risk management as a business enabler means embedding risk assumptions within a company’s overall growth plans and strategy, so that they overlap, rather than functioning in separate silos.