There are several ways to link risks and indicators to strategy:
- Identify strategic risks: One way to link risks and indicators to strategy is to identify the risks that are most closely tied to the organization's strategic goals and objectives. This can help to ensure that the organization is focusing its risk management efforts on the most important risks.
- Use indicators to track progress towards strategic goals: Another way to link risks and indicators to strategy is to use indicators to track progress towards the organization's strategic goals and objectives. For example, an organization might track financial indicators (such as revenue and profitability) to ensure that it is meeting its financial goals, or track customer satisfaction to ensure that it is meeting its customer-focused goals.
- Use risks to inform strategic decision-making: Risks can also be used to inform strategic decision-making by helping to identify potential risks and opportunities that could impact the organization's ability to achieve its goals. For example, an organization might consider the risk of a new competitor entering the market when making strategic decisions about its product offerings or marketing efforts.
By linking risks and indicators to strategy, an organization can ensure that its risk management efforts are aligned with its overall goals and objectives, and that it is using its resources effectively to achieve those goals.