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Inside Internal Controls

News and discussion on implementing risk management

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achievement of objectives

How to assess the effectiveness of risk management

Internal auditors are expected, according to the IIA Standards and some governance codes, to assess the effectiveness of risk management.

 

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Is the goal of risk governance taking boards in the wrong direction?

The board is discharging its responsibilities to ensure stakeholders get the performance they should: value creation as well as (and not just) value protection. The board should make sure the management team is effective in running the organization, and that is not done by focusing on a list of harms. Effective governance of an organization is limited if the board focuses on risks.

 

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It’s not about risk management – it’s about the achievement of objectives

I have said many times that it’s not about managing risks: it’s about managing the achievement of objectives. It’s about being successful. Success is measured through the achievement of specified objectives. We improve the likelihood and extent of success if we understand what might happen, both good and bad, as we strive to achieve our […]

 

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What does your risk management activity seek to achieve?

It is essential to understand what an organization needs and how critical the management of risk is before settling on a design, let alone trying to implement or upgrade risk management.

 

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