Aligning risk and the pursuit of shareholder value
While financial institutions may have borne the brunt of the most recent regulatory storm, virtually all companies operating on a significant scale face similar challenges, albeit in different ways and at a different scale. These challenges demand a shift in management focus, from risk management as a corporate function to risk management as a discipline that is embedded across the enterprise and viewed as a strategic asset.
How is such a state achieved?
By making risk management an ingrained discipline throughout the organization, and by building upon four cornerstones:
- Governance and culture
- Business and operating model
- Data, analytics, and technology
A risk transformation is one that only the executive team and board can lead. Given the current and foreseeable environment, it is a transformation well worth leading.