Risk Transformation

Creating value | How KPMG can help | Our approach | Contacts | Related information

Your organisation’s response to COVID-19 is your risk management working at its best. Have you reflected on how your insights, governance and processes enable the organisation to make quick decisions informed by a view of your risk landscape? How prepared are you for scenarios that trigger multiple high velocity risks?

For most organisations, risk management practices already needed to modernise. Recent global events have put the spotlight on gaps in risk capability; the inability to respond to new situations at pace; and lack of clarity for accountabilities, roles and responsibilities from the board through to the day-to-day business management. There will be very few businesses that do not need to immediately reset their approach to managing risk.

This is as much about a mindset shift as it is about frameworks and operating models. With this shift, there will be a focus on ‘protect’ and ‘grow’ strategies where risk management is understood to be key to agility, innovation and brand differentiation.

Done right, the right risk management framework and a pragmatic operating model make it easy to execute across all three lines of defence. Clearly defined ownership of risk and controls and key risk indicators inform mitigating actions and highlight opportunities.

A quick win is the cadence of risk reviews. Organisations have typically done this annually and now need to step-up to a quarterly cadence. It isn’t only about doing the same process more often, but about operationalising through a redesign of the governance model and ensuring the data and insights are there. 

It needs careful thinking and executive alignment on the operating model and priorities. And more than ever, this needs to be driving a shift from risk management based on the past to risk management based on the future.

Organisations are looking to their leaders to build agile, forward-looking environments. These environments are expected to build risk management into everyday activities such as governance and routine business practices. With clear ownership and accountability across all business lines, they should ensure that risk appetite is defined and aligned to the business strategy to drive value. A differentiated market offering to disrupt, positioning new ideas and approaches for the future state risk operating model and framework to transform both business & risk capabilities in order to deliver an integrated and effective enterprise.

Emerging risks

KPMG’s risk framework provides the building blocks and operationalises how emerging risk is integrated into your organisation’s risk framework and governance model to drive better decision making and provide a more proactive response. Risk experts partner to design and implement a future risk operating model that embeds emerging risk management at the heart of it. By recognising and understanding what emerging risks are on the horizon, organisations can flex their business models to counteract further risks and seize the opportunities they provide.

Boards

We support board members drive better outcomes with a clear view of risk across the organisation. By establishing a risk agenda at the board and executive level as part of corporate governance, you can understand and challenge their risk appetite against risk reporting indicators/tolerances received. This drives value protection/value creation whilst challenging the level of transparency around how risks are reported, discussed and managed. We bring industry leading risk experts who understand how risk management needs to be embedded in the business across different industries to support the development of ‘guardrails’ to base strategic and operational decision making on.

To support and deliver on our risk approach we have a team of individuals with extensive risk, regulatory and transformation experience across all industries and sectors.

We can assist you with: risk frameworks; risk operating models; dynamic risk assessments; risk culture and conduct; and transformation risk function.

This is enabled by:

• Risk maturity assessments
• Risk insights, including case studies
• Discovery phase, case for change and delivery roadmaps
• Leadership coaching
• Risk and controls SMEs
• Powered Risk (technology solutions)
• Business transformation
• Change management
• Project management office