Australia

Managing risk and complexity 

Complexity is the salient feature of the modern business environment – it increases risk. Organisations seek to identify and understand risk in order to avoid, mitigate and manage it.
Managing risk and complexity

More than 90 percent of senior executives globally believe managing complexity is the key factor in achieving business success, according to recent research, Confronting Complexity, by KPMG International.

Sally Freeman

Sally Freeman

Partner in Charge, Risk Consulting

+61 3 9288 5389

Mike Ritchie

Mike Ritchie

Partner in Charge, Financial Risk Management

+61 2 9335 8251

The regulatory landscape is one of their priority concerns. Less than half of the surveyed executives think they’re managing this complexity and its associated risks effectively.

 

At CEO/senior executive level, risk and complexity concerns crystallise in several ways:

  • Failure of specific risk and compliance programs
  • Problems responding to increasing regulatory complexity
  • Ineffective, fragmented and duplicated approach to risk.

 

Boards and audit committees, seek more accurate and timely reporting of risk governance matters. They want enhanced risk and compliance effectiveness as they try to contain spiralling compliance costs.

 

Key questions for boards

To respond to the challenge, boards need to ask:

  • Is the risk and compliance function robust enough to cope with more complex risk, increased scrutiny and more rigorous obligations?
  • Has a siloed approach in the organisation led to duplication and overly complex risk and compliance processes that don’t stand up in a rapidly changing environment?
  • Are directors prepared for their increased governance responsibilities and the corresponding scrutiny attached to their role?

 

It is essential that business responds to risk and complexity issues strategically, treating them as an opportunity to create and enhance business value, not just a cost.

 

How we can help

KPMG has developed a proactive approach to these issues based on a governance, risk and compliance (GRC) framework. Talk to us to see how it can apply to your business.

Share this

Share this

Risk, trading and treasury systems in financial services

Risk, trading and treasury systems in financial services
Financial services institutions are seeking new approaches to managing the increasing demands on their risk, trading and treasury systems.

The Directors' Toolkit

The Directors' Toolkit
This toolkit supports directors in their challenging roles, including new Government, Corporate Sustainability and Health & Safety chapters.

Risk Consulting

KPMG works with organisations to help them better understand their risk exposures and develop robust control systems and measures.