Risk is now dominating discussion at board meetings of many of the world's global companies. As the global economy becomes more interconnected, companies are facing more complex risks than ever before. Directors and executives need a trusted advisor and many are turning to the risk professional.
Sally Freeman, KPMG's National Partner in Charge, Risk Consulting facilitated a panel of senior risk practitioners of some of Australia’s flagship institutions to discuss the challenges of risk transformation. Their frank and fascinating revelations are summarised in this article.
- Risk needs a seat at the table – If you are not partnering with the business, executives and the board when decisions are being made, why not? Risk needs to be a trusted partner and adviser.
- Conscious risk taking – What is the upside of risk? "The only bad risk is the risk you didn’t intend to take, risk you didn’t manage well or risk you didn't price well."
- Personnel – The modern risk professional needs to be able to communicate with all levels of the business. There is a shift from technical skills to business leadership.
- Integrating risk into the business – Risk and the business need to work together. The business needs to own the risks they are taking and the chief risk office needs to illustrate the consequences of decision making.
- Reward good risk behaviour – Boards and executives need to reward good risk behaviour for it to truly imbed into the business.