"Anticipating future risks is a key element of avoiding or mitigating those risks before they escalate into crisis." Explain.

The company's risk management structure should include an ongoing effort to assess and analyze the most likely areas of future risk for the company, including how the contours and interrelationships of existing risks may change and how the company's processes for anticipating future risks are developed. This includes understanding risks inherent in the company's strategic plans, risks arising from the competitive landscape and the potential for technology and other developments to impact the company's profitability and prospects for sustainable and long-term value creation. Anticipating future risks is a key element of avoiding or mitigating those risks before they escalate into crises. In reviewing risk management, the board or relevant committees should ask the company's executives to discuss the most likely sources of material future risks and how the company is addressing any significant potential vulnerability.