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Improving your approach to risk governance often entails reviewing, refreshing and revising risk-related practices. Our research and our experience on client engagements indicates that this process is best undertaken with the goal of enabling risk-based decision-making to reinforce the resilience of the enterprise in the face of risk events.
If your business has been thriving, you may see it as immune to risk events and see little need to focus on risk governance. On the other hand, if your business must regain lost ground, you may believe you have higher priorities. In the former case, your organisation may simply have been lucky; in the latter, trying to regain lost ground without more robust governance may imperil the enterprise.
Whatever your current situation, risk events may well have exposed gaps, inadequacies, vulnerabilities and inefficiencies in risk management and governance in your organisation.
To start, considering your current approach to risk governance, ask yourself and your leadership team the following:
Improving your approach to risk governance depends on how clear, practical and robust your existing system of risk governance is. One good place to start making it clearer, more practical and more robust would be to consider your existing governance framework. To assist you in this process, we provide our governance wheel.
Forces within the governance wheel must be properly balanced to do the job. That means understanding where attention, investment and work is required, while recognising that the executive team and the board must do the driving.
We trust that the foregoing will position your executive team and board to improve its approach on risk governance to enable your enterprise to thrive. We also stand ready to assist you in any aspect of this process as you move forward.
This article is part our Integrated Risk Management series, which explores various themes and approaches to management and governing risk.