Risk management is an increasingly important business driver, and stakeholders have become much more concerned about risk. It may be a driver of strategic decisions or 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 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”.
All types of organisations need to understand the risks being taken when seeking to achieve objectives and attain the desired level of reward. Companies must take into account the overall level of risk embedded within their processes and activities. Organisations need 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, the effectiveness of tactics (change projects) and the efficacy of the strategy of the organisation.
Our consultants operate using the ISO 31000 Risk Management – Principles and Guidelines