Risk Management
Risk management is the responsibility of everyone in an organisation and it is inherent in every activity. Boards need assurance that a strong culture of risk management exists and that risks are being managed effectively.
It is essential that there is a clearly documented risk management framework in place where risks are identified, assessed, managed and reviewed. This framework should include consideration of risk appetite (the amount of risk that the organisation is willing to accept).
There should also be a clear process for reporting risks at all levels, reviewing these risks and ensuring a timely path of escalation for business critical risks.
Our experience has been that risk management processes may not be fully embedded for a number of reasons, which affects strategic and operational decision making and overall performance. These include:
- Overcomplicated risk systems - Risk registers too daunting and overcomplicated meaning that they are not used effectively as a risk management tool
- Lack of clarity and ownership - over the top-down/ bottom-up risk process with lack of clear governance process as to responsibilities for the review of risks
- Articulation of risks - often risks are not well articulated in businesses due to a lack of understanding of what a risk actually is. Too many times we see risks defined as issues and the actual risk is not clearly understood.
- Inappropriate controls and actions – to reduce / mitigate risks
- Inconsistent reporting and no clear escalation – which can mean that some risks get ‘lost’ and are not management appropriately on a timely basis
Risk Management Reviews
At Elsiarc we can provide you with an independent review of your risk management processes across the entire business to help provide your Boards and management teams with the assurance that risks are clearly understood, are being managed well and are being reported accurately so that decision making is aligned to the risks of the business.
Our approach focuses on both high level and detailed reviews covering:
- The governance structure and risk assurance framework
- The risk strategy and risk appetite
- The current risk register, the process for capturing risks, assessing, managing and escalation of risks and the system used to ensure alignment
- The controls and actions to mitigate risks, ensuring that they are appropriate, have clear ownership and are reviewed and actioned
- The reporting of risks
- The provision of training and tools available to support an established risk management culture
Risk Workshops
Elsiarc also provides facilitation workshops for operational teams to:
- Understand, identify and assess risks
- Manage risks and develop robust actions and controls to mitigate risks
- Report and review risks on an ongoing basis