One should not assume that Risk Management will function properly if a department has been established, a system has been purchased and people have been trained for this purpose. So what does guarantee its success?
We believe that success is largely determined by two conditions. These are, on the one hand, a Risk Culture that ensures that this process can be implemented properly, and an effective Risk Control process on the other. The Risk Culture begins with the Tone at the Top. Is there a conscious intention to safeguard Risk Management properly in the organization and is its usefulness being recognized? The company culture also determines the risk attitude. Changing the Risk Culture is possible, but largely depends on personal attitudes.
The structure of the Risk Control process lays the groundwork for governance, an unambiguous risk identification methodology, clear and up-to-date reports and scheduled risk meetings. What form does this type of risk meeting take? Who is involved and what information can be used to gain adequate insight into the current risk situation?
We believe that an IT application should optimally facilitate the operation of the Risk Control process based on a proactive design (alerts, automatic signaling), clear reporting (dashboards and reports) and the integration of data (compliance, risk, process). Nevertheless, you will still be facing other challenges related to the Risk Control process.
What is your experience? Please let us know and contact us.