Key Considerations When Conducting Risk Analysis and Risk Management to Reduce Exposure in Enterprise and IT Services

摘要

Serious-minded organizations that want to minimize business exposure and losses will want to focus on reviewing how their risk analysis and risk management processes are being practiced at present in their organization. The Board and senior management have a statutory obligation to direct and practice sound enterprise governance Some important questions that management should ask are: 1. Is there a policy on risk management enacted and supported by senior management? 2. Are the responsibilities for spearheading and developing risk management programs identified and assigned to various accountable functionaries? 3. If risk management is a Board-level issue, can the organization need a C-level executive in the form of the Chief Risk Officer (CRO)? 4. Is there an approved methodology or guidelines for conducting risk analysis and practicing risk management? 5. Is the methodology being consistently and uniformly applied by all functional units of the enterprise? 6. Are the results of risk analysis reviewed by independent parties to assess whether it was conducted in a sound manner? 7. Does the internal audit department, Chief Risk Officer (CRO) and/or Chief Compliance Officer (CCO) (if they are available) help or participate in conducting risk assessments? Risk analysis and risk management are increasingly a very important activity in sound governance-minded companies. Risk management is a dynamic activity that evolves and changes in companies and should be subject to a dynamic upgrading and review process to ensure that is in tune with the continuously ganging threat and risk panorama that organization of all types are subject to. This paper provides though and guidelines for improving your risk analysis and risk management posture and practices which should also be prerequisite to achieve sound Governance, Risk Management and Compliance programs.