Turning Risk from Chore to Core
Risk Management = Chore
In many instances firms consider they only need to undertake effective risk management when required to do so by regulation or law. In this view, ‘risk management’ becomes mostly a compliance exercise and can be viewed mostly negatively.
This makes true integration and embedding difficult to achieve. In our view Risk Management, when done properly, is actually a highly positive business enabler, capable of supporting the delivery of business objectives, for any firm, in any sector.
Viewing non-financial disclosures through the lens of enhanced risk management supports sustainable business impacts and outcomes.
Too often risk Management is viewed as a ‘cost of compliance’, or a ‘business prevention’ function.
Risk Management = Core
Why should any firm have effective risk management?
An enterprise’s Risk Strategy should be designed to assist the business in the achievement of its objectives. It should seek to do this not through risk avoidance, but through the embedding of a framework through which it can identify and manage its risks to an acceptable level (its ‘risk appetite’).
This strategy ensures that the risk management program is aligned to delivering its business strategy and is company – wide; including third parties such as outsource service providers.
At Crowe Horwath, our risk consulting professionals help organizations resolve strategic issues and achieve sustainable change by helping transform their governance, embed risk into their decision-making, and maintain efficient compliance. They take a highly collaborative approach to provide services across a broad range of organization and corporate risk management disciplines, including: