The depth and severity of the financial crisis has led to increased focus by rating agencies, the SEC, and Congress on how companies identify, assess and monitor risks. Financial disasters have resulted from dramatically increased scrutiny of financial practices and
Here are some tips for a pragmatic
- Actively engage senior management, the board of directors and other key stakeholders
- Establish clear accountability for risk management and oversight
- Accelerate identification and assessment of key strategic risks
- Understand competitive vulnerabilities and industry dynamics
- Create value by focusing on those risks critical to achieving business objectives
- Promote transparency by moving beyond functional and organizational silos
- Build increased awareness and a risk culture throughout the organization
- Assess organizational capacity to manage risks
- Leverage activities and processes in place
- Identify gaps and remediation activities
- Define reporting metrics and protocols
- Reduce costs by improving ineffective processes
- Institutionalize risk assessment as ongoing element of governance activities
Solid risk management practices such as these bring greater clarity and transparency regarding corporate governance structure and the risk management culture.
To learn more on this subject,attend CFO Dimensions 2013 in New York City, August 21-22. Register with code CFODKAR for a special $649 discount here.