Companies have been pouring money in to technology, people and processes which can help them supervise and administer the risk. Most organizations have done a fabulous job for enclosing there compliance risks and financial reports. Some of them have streamlined or automated their internal operations and controls which make them feel more protected as a business as they have completed the checklist of observance to regulatory requirements.
But what about the other strategic risk areas, like the ones which are related to emerging market entry or the growth strategies for acquisition? What about the risks which can affect the financial performance of the enterprise — risks can be classified as brand defamation or product relevance? These are the areas where executives are a bit less confident.
Recent researches have indicated that from a risk maturity perspective top-performing companies have implemented on average twice as many of the core risk capabilities as those in the bottommost performing groups. Effectively hitching technology to provide a backing for risk administration is the greatest opportunity or weakness for most organization.
Top-Performers use the following for setting risk strategy
- Establish an open communication network which is two-way. This setup update external stakeholders about the risks.
- Offer stakeholders all relevant information which transports the decisions and values of the organization.
- Have an established board committee which plays a leading role in elaborating risk management System.
- Embrace and implement a common risk structure throughout the organization.
To implant risk management, top-performers have the following:
- Use an official and recognized method to outline risk verges.
- They conduct a stress test to measure and validate risk lenience. Embrace an efficient risk management sequencer.
- Synchronize planning and risk reporting cycles so that present information concerning risk problems can be merged in to business planning.
To augment risk operations, top-performers:
- Integrate risk-related trainings into individual performance.
- Regulate risk administering and reporting tools throughout the organization.
- Incorporate advance technology to support the organization in reducing or preventing laying-off and lack of reportage.
- Pinpoint and report intersection and replication of risk operations.
Top-performer utilize the following to enhance controls and processes:
- They generate key risk indicators or KRIs within the lines of business which can anticipate and model risk analysis.
- Systemize self-analysis and other reporting regiments throughout the business.
- Elevate controls to enhance efficiency, diminish costs and upkeep amplified business performance.
- Integrate key risk metrics at the business level.