OTC MARKET NEWS Powered By Quantifi

Corporate discipline underpins risk management 

April 13, 2015

James Dunn, Financial Review

If asked, most companies would affirm they have a strong "risk culture" that enables them to recognise, understand and manage risk. But simply saying this is not enough: establishing and maintaining an efficient risk culture is not that easy.

Sally Freeman, head of risk consulting at KPMG Australia, says an organisation's risk culture embodies its recognition of risk, and the way it manages its risks. It is an unsentimental, objective and disciplined approach to risk. "The serious risks that face an organisation are those it fails to identify, followed by those it misunderstands," she says.

The tone is set at the top, she says. "A strong risk culture is not going to be achieved through policies and procedures and written documents. It's back to ethics and values and some pretty old-school principles that boards are trying to instil from the top and build into the organisation. They're putting in real, measurable things around that culture and how they actually report on it and understand the tone that they're setting at the top."

Read more: Financial Review

Comments are closed on this post.


Submit your email to receive our newsletter