The number of assets potentially at risk often exceeds the resources available to manage them. For guidance on business planning which incorporates the risk management process, you should be able to refer to your enterprise risk management policy. Your enterprise risk management program should contain an updated portfolio of risks that is intended to help ensure that the risk of improper payments across your organization is managed strategically.
Start at the beginning with the basics across people, processes, and technologies, including assessing gaps and risk levels and securing glaring vulnerabilities. A program focus on managing enterprise risks with emphasis on hazard, operational, strategic, and financial risks that are inherent in organizational business activities and engagements provides a uniquely detailed description of the distribution of responsibilities and actions to address risks and opportunities. This will facilitate the implementation of the procedure in QMS and processes.
Risk management relies on the information, expertise, and ability of an organization to take corrective action being already contained in its lines of business. The management of compliance risks facing an organization should align and integrate compliance risks into other programs that address operational, financial, and strategic risks and partner with risk management functions and internal audits to ensure the compliance that an adequate risk program operates to accomplish. After you have a risk management plan outlined, you can start adding tasks to your project plan for helping mitigate or eliminate risk.
You need to analyze each operational function and use your proprietary risk-rating methodology to determine where and how your risk management and audit dollars can most effectively be deployed. Any organization can create a successful risk reduction program by clearly defining and adhering to the process for reporting, investigating, and addressing the causes of incidents and accidents, establishing a communication process to obtain information about potential fraud.
The chief information security officer should have a seat at board meetings and a place on the agenda as a key player in the overall risk management program and long-term planning. Each organization needs to assess the degree of emphasis to place on fraud risk management based on its size and circumstances. Risk management to prevent disaster can use an organization’s risk program as a competitive advantage through making more capital available to the real priorities and strategically aligning the available resources to initiatives that will have to benefit the top and bottom line, from customers to employees to shareholders.
Top corporate leaders are realizing that risk management practices are applicable and valuable as tools to address and mitigate risk in business environments. The oversight and management of carrier resources to advance operational and financial objectives deals with the coordination of carrier audit deficiencies with cost effective corrective action plans. Good preparation leads to better protection – it encompasses all areas of organizational exposure to risk, including financial, operational, reporting, compliance, and governance, as well as strategic, reputational, and many others.
Internal control deficiencies detected through monitoring activities should be reported upstream and corrective actions be taken to ensure continuous improvement of the system. Project managers should inform senior management of obstacles as early as possible to ensure that proper controls are in place and corrective action can be taken to manage risk exposure, including the strategies, policies, and practices established by and within your organization.
The implementation of a governance, risk, and compliance system, which links risks, controls, and internal audit findings with the associated corrective actions, can provide an end to end view of the risk and controls in an organization. Perhaps because of its origin in the financial services sector, risk management tends to be considered by most organizations in terms of potential financial risks when its applications are, in fact, much broader.
Want to check how your Enterprise Risk Management Program Processes are performing? You don’t know what you don’t know. Find out with our Enterprise Risk Management Program Self Assessment Toolkit: