A total approach to corporate governance and risk management

By investing time and resources into good corporate governance and an effective risk management programme, your organisation will have the strategies, people and procedures to manage risks effectively and optimise the benefits.

Reasons for investing time and effort in risk management:

• The benefits risk management brings to the business and its personnel
• The often hidden total costs when a major incident occurs
• The fact that most businesses are already managing risks to a greater or lesser extent and would gain by understanding how to do it more formally
• Meeting legal and regulatory requirements.

The benefits add up to a much more competently managed business which can take calculated risks without betting its own survival and losing its investors’ money.

People often fear that risk management will increase costs. It is true that in the short term there is additional effort and therefore cost in identifying risks and filling in any gaps in the ways they are managed. Some good news is that once formal risk management systems have been set up and documented the maintenance of them becomes straightforward, particularly when supported by our Magique Risk Management software. Updates will form part of other routine processes such as strategy reviews, annual budgeting and quarterly finance reviews, employee appraisals and year end reporting procedures.

But against the costs of risk management there needs to be offset the costs of a risk materialising – which are usually far greater than just the immediate loss or damage. And sometimes it becomes clear that the cost of the response is greater than the benefit in reducing the risk – so the response may be reduced.

Risk Response is our complete Risk Consultancy Service.

How will Risk Response work for you?

We work with you to establish a methodology that is individual to your organisation. Whether you would like us to help get you started, or to help you every step of the way, our Risk Response service will be tailored to respond to your needs.

Education, training and mentoring is key to every stage of the process which includes:

• Corporate Governance - working with strategic decision makers to ensure that key issues are recognised and dealt with effectively including accountability, performance and satisfying stakeholders’ interests.
• Defining the risk framework - deciding on the best methodology and techniques for your organisation.
• Assessing and evaluating the risk - conducting workshops, interviews and questionnaire programmes.
• Determining the risk management strategy - developing practical solutions, creating action programmes and implementation procedures.
• Reporting to the Board on the overall process - providing current and timely information to the Board enabling them to give assurance on the risk management process.
• Embedding the risk management approach into mainstream business activities - building a culture within the whole organisation and enabling the business to meet its objectives.