Read Time: 4.5 Minutes
“Why does every new market feel like playing dodgeball… blindfolded?”
That was my question last quarter after watching a high-growth client lurch from one surprise to the next—vendor shortfalls in Asia, a compliance audit in Europe, and a social-media storm at home. They’re not alone:
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61 % of executives expect the amount of risk they personally manage to surge in the next 3-5 years (KPMG, 2024) kpmg.com
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75 % of risk leaders say money pressures keep them from investing in the tech they need to stay ahead (PwC Pulse Survey, 2024) pwc.com
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Only 25 % of boards hold structured discussions on supply-chain risk—meaning most see problems only when the fire alarm rings (McKinsey, 2024) mckinsey.com
No wonder scaling feels like strapping a jet engine onto a skateboard!
Executive Summary – Turning Risk Into Rocket Fuel
Speed without control courts disaster. The COSO ERM “5×5” Framework turns risk management from a compliance cost into an accelerant by wiring five mutually reinforcing components straight into the growth engine.
Action Steps – Applying the "5×5" Framework to Your Scale-Up
| Component | Quick Test | Move to Make This Week |
|---|---|---|
| Governance & Culture | Who owns risk appetite today—really? | Draft a one-page risk-appetite statement; assign a senior “risk champion.” |
| Strategy & Objective-Setting | Do goals reflect risk-reward trade-offs? | Stress-test two “moon-shot” initiatives under worst-case scenarios. |
| Performance | Which emerging risks could kill momentum? | Build a Top-5 risk register—rank by likelihood × impact; tag responsible owners. |
| Review & Revision | When did we last recalibrate controls? | Hold an after-action review on the most recent disruption; log adjustments. |
| Information, Communication & Reporting | Are dashboards decision-ready? | Add leading Key Risk Indicators (KRIs) to executive and board packs. |
Lead-In: Treat these five moves as guard-rails, not brakes. When teams know the edges, they drive faster with confidence.
Real-World Example
Six months ago, a tech-enabled distributor was pushing into three new regions. Growth was stellar—until a sudden regulatory change froze shipments and burned six figures in expedited fees overnight.
What We Did:
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Ran a two-day “risk sprint” using COSO 5×5.
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Identified talent bottlenecks and supplier concentration as top blind spots.
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Instituted weekly KRIs and a quarterly “rapid-resilience” drill.
Outcome:
Operational hiccups dropped 40 % in the next quarter, margin recovered two points, and—crucially—the board gained enough confidence to green-light the next market entry.
Real Strategies. Real Results.
Scaling isn’t just about speed—it’s about sustained velocity. When risk discipline grows in lock-step with revenue, leaders trade panic for poised decision-making, protect cash flow, and keep optionality alive for the next bold move.
Sam Palazzolo
Real Strategies. Real Results.
PS – Here’s how I can help right here/right now:
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Catalyst Audit – Identify if your growth plan is globally ready (and where it’s likely to break).
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Catalyst Board – Join an elite peer group navigating similar international scaling challenges.
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Catalyst Strategy Session – A focused 1:1 engagement to get your global expansion plan aligned and actionable.
Email me at [email protected] to find out more.
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