How does your business manage its risk?
Risk Management is recognised as an integral component of good management and governance for any sized company. It is an iterative process consisting of steps and process, which enables risk identification and continual improvement throughout the management decision-making process.
“With the growing interest in principles of responsible investment, sustainability and corporate responsibility, reputation risk is one to keep an eye out for. Sound corporate governance, including multiple oversight points, fact testing, independent verification and reference checks, is critical in controlling this risk.” Joseph Stokes: Property Risk and Business Manager - DEXUS Property Group
Risk Management is the term applied to a logical and systematic method of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organisations to minimise losses and maximise opportunities.
This can of course become very complex!
Risk Management Agencies like Ascentium now exist to make this process simpler BUT also bring expertise for services such as Risk Assessment, Risk Management, Risk Mitigation, and Risk Advisory.
Risk Management Agencies provide a range of services such as audits, controls, reports and frameworks. However, this is only the visible part of the iceberg.
Risk management is as much about identifying opportunities as avoiding or mitigating losses. It involves a complex infrastructure of systems, practical methods, and people implemented in a firm to identify, assess and limit or select risks.
Want to create your own Risk Management Process?
We’ve provided the key elements of the risk management process to get you started.
· Establish the context
· Criteria against which risk will be evaluated
· Identify any risks
· Identify what, why and how things can arise as the basis for further analysis
· Analyse risks
· Determine the existing controls and analyse risks in terms of consequence and likelihood they will occur
· Evaluate risks
· Compare estimated levels of risk against the pre-established criteria so risks can be ranked and management priorities identified
· Treat risks
· Low-priority risks should be monitored and reviewed
· For higher consequence risks, develop and implement a specific management plan or procedure that includes consideration of all aspects required to mitigate the risk to an acceptable level
· Monitor and review the performance of the risk management system and changes
· Communicate and consult with internal and external stakeholders.
To understand the types of risks that are associated with your type of company, please book one of our complementary risk assessment meetings by contacting us on info@ascentium.com.au
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