Risk Management
Introduction
Effective risk management is more than an organisation having a “hands-on” board of directors, risk committees and meeting its legal requirements. It is about ensuring that your organisation takes a holistic and proactive approach to managing risk as it relates to your business.
The requirement for organisations to introduce more formalised “risk aware” processes has increased exponentially with the passing of numerous pieces of legislation in the wake of the recent and very public corporate collapses in Australia and the US. The most prominent of these has been the Sarbanes-Oxley Act which was passed in 2002. In this respect, risk has now taken on an international perspective for many Australian organisations with US parents being audited on the basis of US law.
How Will We Help You?
A well designed risk management strategy or framework will allow your organisation to manage its existing risk, will introduce internal controls to mitigate ongoing risk and may even explore areas where your organisation could increase its risk profile to assist in the growth of your business.
We consider a number of criteria when reviewing the risk profile of various organisations, many of which are interdependent. These include how your organisation can:
- Avoid risk
- Reduce its risk exposure
- Assign or transfer its risk
- Mitigate and insure against risk
- Retain certain levels of risk without negatively impacting the business
Strategic Consulting Team will also assist your organisation transform its corporate governance practices from what may be a narrow focus on legal and regulatory compliance to a broader business-orientated approach. Our comprehensive methodology will assess the corporate governance procedures within your organisation. We will work with you to review your organisation's governance practices and determine how best to ensure that these can be incorporated into a compliance framework. This may include how to:
- Identify the different resources within the organisation that will be impacted
- Develop and map out the various processes that require controls
- Apply existing technologies including document management, business process management and business activity monitoring to support the compliance framework
- Obtain the “buy-in” of the various users within the organisation so that they value being involved in the project
What Benefits Will You Receive?
By implementing a compliance framework your organisation will, among other things:
- Reduce its risk position across the different operational areas of your business
- Gain greater effectiveness and efficiency in its operations
- Have a better insight into its operations in real time
- Be positioned to comply with the legal and regulatory requirements that are applicable to it
- Achieve higher levels of investor confidence
- Reduce the risk of internal processes being abused or avoided
- Attract investment to grow its business
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