Risk Management and Governance
Updated: Jan 11
Risk is inevitable and if change were the sign of life, then risks are the fallouts of change. Denying risk is living in denial and timely knowledge of risk can represent a competitive advantage.
It is essential to identify, manage, and mitigate risk rather than eliminate it. We all love kids but none of us tolerate childishness since life is all about growth, change, risks, and management of growth.
" Risk management is a tool that serves this purpose by making processes pragmatic, agile, flexible, and mature."
Governance is the process by which risk management is made everybody’s responsibility and the matrix of responsibility, authority, and accountability represents the string or thread that keeps it all together. This string or thread and its strength represent governance.
Businesses cannot be micro-managed not only because of globalization but also to enable employees to grow and perform (or perish) by providing the opportunities and environment that encourage initiatives, responsibility, and accountability.
" Governance is the virtue that keeps the entity at its toes and is not the responsibility of the directors and senior management only."
Under such circumstances, it is the existence, relevance, and maturity of business processes that are critical and these processes need to be forward-looking and ahead of the competition to make them relevant and propel the business.
Risk management is a tool that serves this purpose by making processes pragmatic, agile, flexible, and mature. Risk management at the entity and operational levels makes the business competitive since to be forewarned is to be forearmed.
Governance is the virtue that keeps the entity at its toes and is not the responsibility of the directors and senior management only. The commitment and allegiance that every stakeholder demonstrates in upholding the values, culture, and integrity of the entity, separate a great entity from a good one.
The criticality of governance can be compared to the art of parenting, where the parents cannot control the child outside of the home, but the values, culture, and integrity of the family restrain him or her from succumbing to the worldly temptations.
Our over-arching and avowed commitment to risk management and governance proves that we are Relevance in Deed.