To be truly effective across an entire organisation, a systematic and comprehensive risk management program is required. Enterprise-wide visibility of risk issues and their relevant controls is required. Key questions that senior managers need to be able to answer include:
- What are the organisation’s material risks?
- How are the key material risks monitored?
- How are material risks being controlled and managed?
- How is the effectiveness of risk controls ensured?
- How are risk management efforts prioritised to ensure maximum value for risk management investment?
For an effective outcome, it is important to ensure that the key risk management functions are working together. A successful Enterprise-wide Risk Management program should provide a structured, consistent, scalable and continuous process that can be applied across an entire organisation to enable material risks to be better understood.
Through this enhanced understanding of the underlying risk issues, the material risks can be better managed. The Enterprise-wide Risk Management program can provide the information and the tools to enable better risk-based business decisions to be made. Benefits include:
- Optimising the allocation of capital resources
- Increased value from risk management efforts
- Increasing operational efficiency
- Simplified compliance with corporate requirements
R4Risk can assist with the development of an Enterprise-wide Risk Management program that provides the necessary flexible and scalable approach to suit the specific objectives and needs of an organisation, with the ability to apply such a program across the entire organisation, or to tailor it to address specific areas of concern.
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