The future of risk management in your organisation

Transcription

1 The future of risk management in your organisation Stephen Coates Director, Assurance Advisory Group The business Business details, registration details, business premises Organisation chart, management & ownership, key personnel Products/services Innovation Insurance, risk management Legal considerations Operations Sustainability plan

2 Understanding risk Innovation Redefining competitive advantage through effective innovation Introduce technical and non-technical innovations Enhance existing innovation management and R&D processes Commercialise new technologies through license and start-up company pathways Redefine competitive advantage

3 Targeted innovation management Identify and implement innovations Focus on strengthening business models by aligning innovations with challenges, resources and the aspirations Identify short, medium or long term innovations that align with the growth aspirations Innovative ideas are captured from a range of sources Innovations can focus on product / service innovations, process innovations or organisational innovations Implement one or more innovation rounds depending on needs. Approach is focussed on innovation implementation and achieving results. Internal innovation solutions Enhance the outcomes of internal systems through impact evaluations including; R&D engagement and management; training of staff in innovation process; and technology scouting. Benefits include R&D enhancement processes that improve the design, implementation and outcomes of R&D. Embed a comprehensive approach to incorporating innovation within organisational structures.

4 The market Market research Market targets Environmental/industry analysis Your customers S.W.O.T. analysis Your competitors Advertising & sales The future Vision statement Mission statement Risk appetite, risk tolerance, risk capacity Goals/objectives Action plan

5 9 Understanding basic terminology Risk Appetite Defined as the amount and type of risk that an organisation is willing to pursue or retain. It is usually defined in quantitative and qualitative terms (as not all risks can be quantified). Risk appetite is a dynamic concept and needs to be revisited regularly. Risk Tolerance Defined as an organisation s or stakeholder s readiness to bear the risk after risk treatment in order to achieve its objectives. While risk appetite is about the pursuit of risk, risk tolerance is about what an organisation can bear. There will be occasions where an organisation can bear more risk than it is thought prudent to pursue particularly where tolerance levels are influenced or defined by legal or regulatory requirements. Risk Capacity Relates to an organisation s capabilities to take on and manage risk. Capabilities include people, capital, technology, timing, resources etc. Assurance Advisory Group Strategic growth Confident Decisions - Anticipate and proactively deflect the most common barriers to growth. Entrepreneurial Mindset - Foster a more innovative and creative culture throughout your organisation. Competitive Advantage - Create a pipeline of ongoing growth opportunities. Case and Development - Develop a growth strategy based on your specific organisation s needs.

6 Enterprise risk drivers ISO31000 Establishing Context: This includes an understanding of the current conditions in which the organisation operates on an internal, external and risk management context. Identifying Risks: This includes the documentation of the material threats to the organization s achievement of its objectives and the representation of areas that the organisation may exploit for competitive advantage Analyzing/Quantifying Risks: This includes the calibration and, if possible, creation of probability distributions of outcomes for each material risk. Integrating Risks: This includes the aggregation of all risk distributions, reflecting correlations and portfolio effects, and the formulation of the results in terms of impact on the organisation s key performance metrics. Enterprise risk drivers ISO31000 Assessing / Prioritising Risks: This includes the determination of the contribution of each risk to the aggregate risk profile, and appropriate prioritisation. Treating/Exploiting Risks: This includes the development of strategies for controlling and exploiting the various risks. Monitoring and Reviewing: This includes the continual measurement and monitoring of the risk environment and the performance of the risk management strategies.

7 Mapping assurance Workable approach

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