|
Back to What We Do
Risk Management
What
is Risk Management?
Risk is often
viewed as being a negative and therefore risk management has been about
planning how to react to problems or uncertainty. However, there is also
risk in that management may not see or take actions that could have
improved the value of the business to stakeholders.
Risk Management
is about creating a structure that allows all process of the business to
be examined on an on-going basis. This examination should make an assessment
of hazards and opportunities that arise from the process as well as the
likelihood of the event occurring and the impact it will have on the
business.
For companies
that are quoted on the London Stock Exchange there is a responsibility for
the Board of Directors to ensure that their company is in compliance with
the guidance provided in the Turnbull Report on Internal Controls
including Risk Management.
How
can Risk Management benefit the business?
Risk management
allows the business to quantify / qualify the impact of taking or not
taking particular actions and prioritize initiatives based on the
assessment of need.
A properly structured
approach will also help the business comply with the requirements of the
Turnbull report:
-
'The board
should maintain a sound system of internal controls to safeguard
shareholders' investment and the company assets'
-
'The
directors should at least annually, conduct a review of the
effectiveness of the company systems of internal controls and should
report to the shareholders that they have done so. The review should
cover all controls, including financial, operational and compliance
controls and risk management.'
How
we can help
We do not have
practical experience of implementing a risk management approach. However,
we are familiar with the concepts as they form part of other management
tools such as project management and performance management.
We can help
project manage the introduction of a risk management initiative and assist
in the identification, mapping, and risk assessment of business processes.
Top
| 
Home