Page 72 - IRMSA Risk Report 2020

RISK MANAGEMENT C APABILITIES

1. Adopt a risk management approach and framework that is sound and flexible enough to effectively respond to the risks and
opportunities in a rapid changing business landscape.
2. Ensure that the risk management function is adequately resourced to support effective risk-based decision making in the
organisation.
3. Skills should be developed to incorporate data analytics, quantification of risk and opportunity as well as the development of
predictive capabilities ensuring speed, agility and coverage expected in a dynamic business landscape.
4. Innovation in the ways that risk data is obtained leading to real-time risk monitoring and management as well as optimising time
and resources.

IS Y OUR OR GANISATION ’ S RISK M ANA GEMENT FR AME W ORK DO THE REST OF Y OUR OR GANISATION ’ S PERSONNEL HA VE
INNO V ATIVE ENOUGH T O REM AIN RELE V ANT AS THE DISCIPLINE THE ADEQU ATE SKILLS T O M ANA GE RISKS IN THEIR AREAS OF
AND BUSINESS C ONTEX T DE VEL OP ? RESPONSIBILIT Y ?
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%
Yes - risk management is a focused part of my organisation's skills development processes
Yes, adequate time and effort is expended to innovate and optimise our framework Yes - based on guidance and or training from the risk team” and remove the words “the right skills
Sometimes - we review and update our framework annually No - they conduct risk management activities ad hoc when asked to by the risk team
Seldom - we update our framework when we become aware of shortcomings No - they believe they don't need any additional skills to manage risk
No - we are too busy with basics and lack access and/ or resources to innovate

DOES Y OUR OR GANISATION OPTIM ALLY USE D ATA T O M AKE
DO Y OU HA VE THE APPR OPRIATE RISK M ANA GEMENT SKILLS ? INFORMED RISK-B ASED DECISIONS ?
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%
Yes - my organisation actively enables me to continually develop my skills Yes - our organisation's data sources are digitally and effectively integrated into our decisions
Yes - I actively research and study to improve my skills to meet the demands of my job Yes - our organisation manually include data into our risk management reporting
No - I do not have access to or are not enabled to develop my skills Somewhat - we try to include our data into our decisions, but it is too difficult and fragmented to add real value
No - I do not know what skills I need to do my job well No - it is extremely difficult to make any sense out of our data to make informed risk-based decisions

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