Risk management a higher priority today - Part 2
Risk management a higher priority today - Part 2
In the first part of the story, Christopher Loh, Partner, Accenture Management Consulting and ASEAN Practice Lead, Accenture Risk Management, observed trends specific to certain Asian countries.
Here, he continues with his observations:
Enterprise Innovation: How can enterprises become Risk Masters?
Christopher Loh, Accenture: Based on Accenture’s study, the following capabilities rose to the top when it comes to mastering a new generation of risk masters:
1. Create shareholder value from risk management.
Risk Masters are especially adept at creating processes and mechanisms that link risk to business performance. Risk Masters are especially attuned to their risk management function as a driver of specific benefits. For example, 74% of Risk Masters see the risk organization as critical to reducing operational, credit and market losses compared with only 34% of non-Risk Masters.
2. Involve the risk organization in key decision-making processes.
The risk management organization needs to be included in activities such as strategic planning, objective setting and incentives, financing decisions and performance management processes. Accenture believes that, by involving the risk function in key business decisions, companies can link risk and profitability objectives, improve strategic capital decisions and increase shareholder returns.
3. Improve the sophistication of measurement, modeling and analytics to anticipate risks in an increasingly complex environment.
Here, he continues with his observations:
Enterprise Innovation: How can enterprises become Risk Masters?
Christopher Loh, Accenture: Based on Accenture’s study, the following capabilities rose to the top when it comes to mastering a new generation of risk masters:
1. Create shareholder value from risk management.
Risk Masters are especially adept at creating processes and mechanisms that link risk to business performance. Risk Masters are especially attuned to their risk management function as a driver of specific benefits. For example, 74% of Risk Masters see the risk organization as critical to reducing operational, credit and market losses compared with only 34% of non-Risk Masters.
2. Involve the risk organization in key decision-making processes.
The risk management organization needs to be included in activities such as strategic planning, objective setting and incentives, financing decisions and performance management processes. Accenture believes that, by involving the risk function in key business decisions, companies can link risk and profitability objectives, improve strategic capital decisions and increase shareholder returns.
3. Improve the sophistication of measurement, modeling and analytics to anticipate risks in an increasingly complex environment.
