Page 69 - IRMSA Risk Report 2020

We present the opportunities for increasing the effectiveness of risk management as deduced from the responses to the different
questions posed to our participants. Risk professionals, boards, executive- and oversight committees should consider the following:

RISK CULTURE, TONE AT THE TOP AND ROBUSTNESS OF RISK DISCUSSIONS

1. Risk managers who add the most value to an organisation’s performance are the ones who have accepted the
notion that risk is about the future and uncertainty – moving beyond the risk register.
2. Expect risk management to be more real-time and less driven by the annual plan or the quarterly reporting
opportunities.
3. Request a risk culture and risk maturity assessment at least every three years to assess, independently, the
organisation’s risk culture and risk maturity.

HO W OFTEN DOES Y OUR EX C O HA VE R OBUST RISK DISCUSSIONS V S HO W OFTEN DOES Y OUR BO ARD HA VE R OBUST RISK DISCUSSIONS
TAKING THE RISK SUBMISSION “AS READ ” ? V S TAKING THE RISK SUBMISSION “AS READ ” ?
Functional Management Functional Management
Operational Management Operational Management
Company Secretary Company Secretary
Other Assurance Roles (e.g. Audit, Compliance, Ethics) Other Assurance Roles (e.g. Audit, Compliance, Ethics)
Risk Consultant/Professional Risk Consultant/Professional
Risk Practitioner Risk Practitioner
Risk Manager Risk Manager
Chief Risk Officer/Head of Risk Chief Risk Officer/Head of Risk
Chief Operations Officer Chief Operations Officer
Chief Financial Officer Chief Financial Officer
Chief Executive Officer Chief Executive Officer
Non-Executive Director or Committee Member Non-Executive Director or Committee Member
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Always Regularly as per an agreed annual plan Knee jerk, when something goes wrong Never Always Regularly as per an agreed annual plan Knee jerk, when something goes wrong Never

WHAT IS Y OUR BO ARD ’ S T ONE AT THE T OP WITH REGARDS T O RISK WHAT IS Y OUR EX C O ’ S T ONE AT THE T OP WITH REGARDS T O RISK
M ANA GEMENT ? M ANA GEMENT ?
Functional Management Functional Management
Operational Management Operational Management
Company Secretary Company Secretary
Other Assurance Roles (e.g. Audit, Compliance, Ethics) Other Assurance Roles (e.g. Audit, Compliance, Ethics)
Risk Consultant/Professional Risk Consultant/Professional
Risk Practitioner Risk Practitioner
Risk Manager Risk Manager
Chief Risk Officer/Head of Risk Chief Risk Officer/Head of Risk
Chief Operations Officer Chief Operations Officer
Chief Financial Officer Chief Financial Officer
Chief Executive Officer Chief Executive Officer
Non-Executive Director or Committee Member Non-Executive Director or Committee Member
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Positive, supporting and integral to the Board discharging all of its fiduciary duties Positive, supporting and integral to achieving their mandate for the Board, i.e. strategy
Compliance driven - tick the box and move on Compliance driven - tick the box and move on
Indifferent - they don't really care about it Indifferent - they don't really care about it
Negative - seen as costly and not adding value Negative - seen as costly and not adding value

G R A P H S 3 : R I S K C U LT U R E , T O N E AT T H E T O P A N D R O B U S T N E S S O F R I S K D I S C U S S I O N S .

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