Functions Of Risk Management Department
The risk management team or department should facilitate improved enterprise decision making to boost business performance.
Risk management principles practice and process should increase the efficiency and effectiveness of the business. The business leaders will be able to take more risk consciously as opposed to unconscious acceptance of higher risk levels.
What is the right level of risk will depend on the risk appetite and risk tolerance of the business leaders. There maybe nothing wrong with a high corporate risk exposure to achieve business goals and objectives as long as you know how exposed the business is and put in suitable risk control measures.
iso 31000 Risk Management Principles and Guidelines
Adopting the principles practices and processes of iso 31000 will increase the likelihood of a business strategy being a success. It will also reduce the level of uncertainty that can accompany more challenging business objectives.
Enterprise risk management is not a once in a business lifecycle activity. It is a continuous activity that supports business development and implementation of a more risk aware business strategy.
Enterprise Risk Management Framework
A robust enterprise risk management framework will help embed a more risk aware culture up and down the organisation.
An effective risk management system will require a clear role for the risk management function in the business. The risk management function in the business can only develop added value for the organisation if it is fully supported in the boardroom. With the board behind the risk management function, all levels of the organisation will develop enhanced risk management capability enhanced by the risk manager or risk management team.
The risk management function will support corporate governance and risk oversight but cannot control corporate risks on its own.
Risk Management Function Supports Risk Identification Risk Assessment and Risk Control
However the risk management function does not control corporate risks on its own.
- The risk management function is integral to the risk management process but it isn’t the sole component of the risk management process.
- The risk management function educates informs and trains all levels of the organisation to assess prioritise and control corporate risks. It enables business leaders to manage enterprise risk better.
- The risk management function helps to develop and embed risk control techniques to reduce the likelihood of losses and the size of losses. It should also identify, assess and help seize business development opportunities.
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BUSINESSRISKTV DEVELOPING RISK MANAGEMENT FUNCTION