Risk
Governance - beyond corporate governance and risk management
London, August 2001
Corporate
governance and risk management has hitherto been viewed as
one of those onerous, once or twice per year tasks cramping innovation
and stifling entrepreneurism. The challenge for organisations
is to move the responsibility for risk management out of the hands
of the few and into the minds of the many. Organisations have
to embrace the fundamentals of risk management and institutionalise
the ethos in such a way that it becomes a key competitive advantage
and performance vehicle.
Legislative
changes and shareholder empowerment have been key drivers for
better corporate governance over the last decade. Now the message
is getting home and enlightened organisations are keen to realise
the benefits that come with a cultural and systematic approach
to the identification, management and reporting of risk factors.
Agora
responded to this shift in attitude by developing Risk Governance
in collaboration with a FTSE 250 company and one of the Big Five
accountancy firms.
Risk Governance is a distributed application that allows material risks
to be identified from the boardroom, right out to the edges of
the organisation. The organisation's risk profile is mapped graphically
and can be redrawn using different filters, such as, 'show by
business unit', 'show by strategic objective' 'show by risk owner'
etc. Risks have a clear link to strategic objectives and each
one has a single 'owner' who is accountable for managing risk
plans, actions and progress reporting. To help the owners of risks,
there are links to the corporate knowledgebase and the policies
and procedures database (both provided as separate modules). There's
even a capability to link in virtual experts through an 'Ask the
Expert' feature allowing managers to tap into functional expertise
from outside the organisation.
The
Risk Governance software is customisable and highly parameter
driven enabling users to craft a tailored and extensible solution.
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