Internal and external processes on organizations across all sectors of the economy to have effective structures and processes in place for governance and risk management have never been higher. Increased scrutiny from regulators and owners, challenging economic conditions and high profile failures has brought a number of issues to light for boards and executive management such as:
- Is there a clear and coherent operating framework defined, linking key elements together in a logical manner?
- Does the board of directors and executives have a relatively reliable and measurable definition of risk-appetite?
- How is risk management linked with employee reward and motivation?
- Is risk management included in the process of every day management of the organization?
- How well is risk monitored in all structural subdivisions?
- How well is the organization prepared for external events that have a high impact and low probability of occurring?
- What is the organization’s approach towards risk management? Is it meant to ensure quality control and compliance with legislation requirements or does it cover relationships with suppliers, customers and regulating authorities?
- How good is the risk management system with regard to identifying and determining different types of risks (such as awarded and non-awarded) related to finding new opportunities or ensuring stability?
Deloitte has extensive experience in assisting organizations to improve their risk management and corporate governance.