Risk Management
Risk Management Philosophy and Challenges
| Risk Management as a compliance exercise; |
| Silo-ed risk management processes, leads to duplicate efforts among business units; |
| Inconsistent processes and unclear Roles & Responsibilities lead to gaps in risk activities; |
| Risk Management not anchored in sound enterprise-wide technology systems, leads to inefficiency and increased costs; |
| Risk Management programs fall short by stopping at risk assessments, standalone programs, or conceptual frameworks; |
| Risk Management disconnects from business objectives and, consequently, performance management. |
Risk Management Drivers
| Transform Risk Management process from a silo approach to a more coordinated and oriented approach; |
| Consolidate risks at higher levels of the organization and evaluate global risk exposure; |
| Respond intelligently by focusing on key risks, creating cross-organizational resolution strategies, and tracking response costs; |
| Improve visibility and optimize decision making by aligning risks to strategic priorities and business objectives (enhance risk communications to the board); |
| Monitor key risks in a proactive way through a standardized and centralized Key Risk Indicator framework. |