Risk management: Getting your house in order
Governance in focus
Significant changes have been made to the requirements to managing and reporting of risk which apply to listed companies for accounting periods beginning on or after 1 October 2014. The extent of the changes is only just beginning to be understood. All readers are now in this new regime, but can you say you have reviewed your processes to ensure your company is ready? This edition of Governance in focus provides a practical perspective on the impact and required actions.
There has never been more focus on how organisations identify and manage risk: from regulators, to investors to senior executive management; companies are under pressure to be able to articulate clearly how they identify risks to their business and how they ensure these are being managed within an agreed risk appetite.This will also have implications for how the corporate sector thinks about its risk assessment, measurement and aggregation approaches.
Effective governance is a critical aspect of a successful business: it supports management in executing strategy, managing costs, responding to risk, attracting investment, achieving regulatory compliance and making better, and faster decisions. But as an organisation’s risk profile changes, with new risks emerging and the speed and impact with which risks can materialise accelerating, internal control systems that support good governance need to adapt to be more agile and flexible.