Effective change management is essential for addressing which aspect of risk?

Effective change management is crucial for addressing all types of risks within an organization, especially in the context of the cannabis industry, where regulations and market dynamics can change rapidly. Change management helps to identify, assess, and mitigate risks that arise from internal shifts, such as operational changes, policy updates, or the introduction of new product lines, as well as external influences, like regulatory changes or market trends.

By employing strong change management practices, organizations can create a responsive framework that anticipates potential risks and implements strategies to address them proactively. This includes evaluating inherent risks, which are those that exist naturally due to the nature of the business, as well as residual risks, which are the risks that remain after controls and measures have been put in place.

Furthermore, addressing external risks, such as those posed by economic fluctuations or legislative developments, is equally important. By considering the full spectrum of risks, companies can ensure a comprehensive approach to risk management, leading to better decision-making and enhanced resilience within the fluctuating cannabis market.