Risk Services

Ensuring the continued health and prosperity of the organisation

The role of the board in risk management has increased due to a variety of legislative, regulatory and leading-practice guidelines. With ongoing corporate misadventures the focus on risk will not diminish.  At its most fundamental level, risk management is about ensuring the continued health and prosperity of the organisation, thus it is the responsibility of the board.

As a director do you understand the organisation's risk profile and appetite?  How often does the board review the organisation's risk management policy?  How prepared is your board to oversee risk and take advantage of opportunistic risk?

Using our risk governance framework, Effective Governance will work with your board to ensure the board's role in risk oversight is leading practice.  For more information, contact us.

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Risk Services

Risk governance

Risk is a governance role.  The board's ability to oversee the risk management function effectively is critical to success of the enterprise.  Effective Governance will work with the board and management to define their respective roles and responsibilities in relation to risk.

Setting the risk appetite

The first role of the board is to set the risk appetite of the organisation on behalf of the owners.  Simply this means determining where on the risk-return relationship should the organisation operate.  Although determining risk appetite is fundamentally a board role, Effective Governance will work with both the board and management to determine what are the risks facing the organisation, what is the likelihood of the risks occurring, what are the consequences and how will these risks be treated.  We use the risk framework established by Standards Australia, AS/NZS ISO 31000:2009.

Risk management policy and planning

Does the board's risk management policy have performance indicators which can be measured and reported on?  When was the last time the board reviewed the risk management policy?  Is there a risk management plan which defines how the process for managing risk is to be conducted throughout the organisation?  Effective Governance can assist the board to ensure a leading practice risk management policy and plan is in place through a facilitated process.

Integrating risk with strategy

Risk and strategy are totally interrelated.  The challenge for boards and management is how to integrate these on an ongoing basis.  We can assist the board to ensure this integration does happen.  We can also work with the board to develop key risk indicators (KRIs) that risks can be reported against to provide the board with early warning of a potential event/s or action that may affect outcomes.