Risk management is an increasingly important business driver and stakeholders have become much more concerned about risk. Risk may be a driver of strategic decisions, it may be a cause of uncertainty in the organisation or it may simply be embedded in the activities of the organisation.
An enterprise-wide approach to risk management enables an organisation to consider the potential impact of all types of risks on all processes, activities, stakeholders, products and services. Implementing a comprehensive approach will result in an organisation benefiting from what is often referred to as the ‘upside of risk’.
There is a need for all types of organisations, to understand the risks being taken when seeking to achieve objectives and attain the desired level of reward. Organisations need to understand the overall level of risk embedded within their processes and activities. It is important for organisations to recognise and prioritise significant risks and identify the weakest critical controls.
When setting out to improve risk management performance, the expected benefits of the risk management initiative should be established in advance. The outputs from successful risk management include compliance, assurance and enhanced decision-making. These outputs will provide benefits by way of improvements in the efficiency of operations, effectiveness of tactics (change projects) and the efficacy of the strategy of the organization.
Our consultants operate using the ISO 31000 ‘Risk Management – Principles and Guidelines’.
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