The environment
•The external environment seeks to emphasize the fact that every organization exist within the context of a complex political, economic, social, technological,environmental and legal world. Organization’s will have to map up strategies designed to deal with challenges posed by one or more of these kinds of factors in other to take advantage of opportunities along the way. This also emphasizes the need for organizations to scrutinize the environment in order to identify factors about their environment for which threats might have to be addressed in advance and as well opportunities will be acted on. This will have to be done even when the organization is performing well, utilizing enterprise risk management techniques which will assist the organization to identify far in advance potential future risk and opportunities.