Risk management should be embedded within the culture of the organization so that everyone is focused on managing and optimizing risk.
Risk management should be embedded within the culture of the organization so that every...
Risk management is not the responsibility of a single department — it is the responsibility of everyone, from the chief executive down. It should be noted that mature corporate governance implies much more than just risk management. In addition to solution of major tasks, it also involves establishing clearly designed control systems, providing capital market players with information on company’s financial position, preventing fraudulent actions, ensuring compliance with effective legislation and regulations. All of these things ultimately give the company much advantage, since company’s management can obtain the best information about actual situation.
Financial risks have probably never been more acute. Capital reserves, credit portfolios, investment policies, capital and debt profiles all demand constant scrutiny to adequately manage and mitigate risk. Companies should also be vigilant about risks associated with their suppliers. A counterparty who defaults on a contract or whose business collapses can have serious financial and reputational ramifications for related parties.
Increasingly, internal audit is in many companies elevated from pure compliance to a function that regularly reviews the risk profile for emerging risks and identifies trends as it keeps its finger on the pulse of business performance. The chief risk officer, meanwhile, becomes increasingly involved in strategic decision-making where the emphasis is as much on risk as it is on growth.
KPMG's experienced professionals can help companies tackle risk management, compliance and governance challenges, and deal with risks that could jeopardize their survival.
Olena Liebenstein (Isayeva)