Well planned and tested risk management practices generate extraordinary value-added for your business. The initial stage for applying effective risk management is to establish a governance structure that distinguishes between the executive and monitoring roles. Organisations need to set their risk management framework that will not only determine the risk management process, but also establishes the required protocols for enabling risk communication and the sharing of risk information. The framework assigns also the different roles required to ensure a best-practice risk management process.
Once the governance structure and risk management framework are determined, organisations will then be led into applying a risk management process and embedding it into their core business processes. This includes:
- establishing the organisation’s risk profile based on its external & internal environment;
- identifying the organisation’s risk universe using applicable risk identification techniques;
- identifying, analysing, and documenting risk controls;
- assessing risks using applicable risk assessment techniques;
- determining the organisation’s risk appetite;
- evaluating risks based on the organization’s risk appetite;
- monitoring the organisation’s risk profile; and
- reporting on risk related matters, both internally and externally.
Organisations are required to manage their risk profile to protect themselves from threats which may affect their interests and objectives, their market share, and their future perspectives.
BDO is here to help.
We do not merely see “more controls are required” or “risks need to be mitigated further” as the answer to every question. We take a broader look and consider the business environment as well as its requirements when recommending or implementing solutions.