APPLY PRINCIPLES OF RISK MANAGEMENT

SUMMARY

This comprehensive course provides a thorough exploration of risk governance, drawing upon principles from various authoritative sources, including guidelines on good corporate governance, companies’ legislation, and codes of best practice such as the King Code, ISO 31000, and the COSO framework.

The course begins by emphasizing the importance and value of Enterprise Risk Management (ERM), highlighting its significance in bolstering strategic planning, informed decision-making, and organizational resilience. Participants will learn to articulate the role of risk management within their organizations, integrating risk management principles into their daily activities.

A core focus of the course is to equip participants with the knowledge and skills to develop and implement robust organizational risk management programs. This includes identifying key role players, assigning responsibilities, and establishing standardized procedures for identifying, assessing, managing, and monitoring a wide range of risks, spanning operational, financial, and strategic domains. Participants will gain a practical understanding of how to incorporate risk management into every project, considering both potential risks and opportunities.

Monitoring and assessing the effectiveness of implemented risk management procedures is another crucial aspect covered in the course. Participants will learn how to effectively monitor the performance of risk management strategies, assess their impact, and identify emerging risks. They will be able to measure performance against established indicators and mitigation plans, monitor changes in both the external and internal environments, and determine the influence of these changes on the strategic risk profile.

The course emphasizes the importance of transparent risk reporting and disclosure to stakeholders, equipping participants with the skills to effectively communicate risk information both internally and externally. This includes the preparation of comprehensive risk management statements for inclusion in annual reports.

Participants will be guided through the process of navigating common challenges in applying risk management principles, such as fostering a strong risk culture, securing sufficient leadership support, optimizing resource allocation, ensuring consistent processes, and addressing the complexity of interconnected risks. The importance of proactively identifying and managing emerging risks is also emphasized.

One of the key modules of the course focuses on developing a robust understanding of risk appetite and tolerance. Participants will learn about the roles these concepts play in decision-making and how to effectively communicate them within the organization and to stakeholders. The course will introduce various resources, including industry standards like ISO 31000 and the COSO Enterprise Risk Management Framework, as well as publications from professional organizations like the Risk Management Society (RIMS) and the Institute of Risk Management (IRM), to aid in developing and implementing effective risk appetite frameworks.

Compliance risk management forms a critical part of the course curriculum, underscoring the importance of ensuring compliance with applicable laws, regulations, and internal policies. Participants will learn to effectively oversee the management of compliance-related risks. Practical aspects such as identifying and cataloging relevant legislation and regulations, categorizing and prioritizing them, developing and implementing Compliance Risk Management Plans (CRMPs), and continuously monitoring compliance will be thoroughly covered.

The course also sheds light on the importance of business continuity management, emphasizing risk oversight and preparedness for rare events through Disaster Recovery Plans (DRP) and Business Continuity Management (BCM). The goal is to equip organizations with the tools and strategies to ensure the continuation of critical operations during crises and to strengthen overall organizational resilience.

Participants will gain insights into risk assurance and combined assurance, learning how to provide assurance on the adequacy and effectiveness of risk management practices through management reporting, disclosure of significant risk failures, and internal and external audit assessments. The benefits of adopting a Combined Assurance Model, including aligning assurance activities, minimizing disruptions, and enhancing governance and accountability, will be discussed.

Developing a robust culture of risk management is a key learning outcome of this course. Participants will learn effective strategies to promote a risk-aware culture through open communication, shared understanding of risk management principles, proactive risk identification and response, and continuous improvement of risk management processes.

Finally, the course will introduce participants to the concept of an ERM maturity model, illustrating different stages of risk management maturity – from initial uncertainty to achieving a state of informed wisdom. Participants will be able to assess their organization’s current risk management maturity level and identify areas for potential improvement.

This comprehensive course equips participants with the knowledge, skills, and tools to effectively manage risks, enhance organizational resilience, and make informed decisions that contribute to the achievement of strategic objectives.