Risk Management Training

Risk Management and Understanding the new trends in Corporate Governance

Risk management is inseparable from the company’s strategic and business processes:

  1. Business involves the undertaking of risk for reward. Risks are uncertain future events that could influence the achievement of a company’s objectives. Some risks must be taken in pursuing opportunity, but a company should mitigate its exposure to losses by responsible risk taking and well defined risk strategies.
  2. A considered and systematic approach to risk underpins the success of the company. (A schematic of the risk management process is depicted in Annex 4.1).

The board is expected to exercise duties of care, skill and diligence in identifying, assessing and monitoring risks as presented by the management.

  1. Risk management is the practice of identifying and analysing the risks associated with the business and, where appropriate, taking adequate steps to manage these risks. ‘Risk management’ may imply the elimination or mitigation of particular risks. It may also imply increasing the risks accepted as a deliberate and calculated move to benefit from a forecast outcome, for example investing in additional plant and machinery in anticipation of increased market demand. The costs arising from risks flow not just from the harm from unforeseen events, but also from the failure to capitalise on foreseeable opportunities or circumstances.
  2. Risk management should be intrusive and should not be viewed only as a reporting process to satisfy governance expectations. The rigours of risk management should seek to provide interventions that optimise the balance between risk and reward within the company.
  3. Risk management is important to companies of all sizes and complexity. Indeed, for smaller companies with their traditionally higher rate of business failure or missed opportunities, risk management is essential. Because such companies are frequently young and flexible enough to adapt their culture, these companies may find it easier than their larger counterparts to adopt more aggressive risk management policies.

However, time constraints and scarce resources (including capital) may have a negative effect on these companies’ ability to implement appropriate and effective risk management.

Course Objectives:

  • Assist risk practitioners and line management to understand their roles
  • Enable organisations to set up and align their risk functions
  • Ensure that policy and procedures are in place
  • Understand the new role of internal audit
  • Accept that risk management has numerous benefits and is not only a compliance activity

Course Outline:

Module 1: Overview of Corporate Governance Principals and Risks

  • Board responsibility regarding risk
  • The benefits of a risk management system

Module 2: Setting up Process

  • Defining risk management structures
  • Risk policy
  • Developing the risk management function
  • Compiling Risk committee charter

Module 3: Identification and Assessment

  • Strategic risk identification
  • Strategic risk assessment
  • Value Chain risk identification
  • Value Chain risk assessment

Module 4: Mitigating Risk and Contingencies

  • Value at risk (VAR)
  • Determining risk indicators
  • Effective mitigating actions
  • Assigning accountability
  • Determine effects
  • Plan for contingencies

Module 5: Implementation and Monitoring

  • Risk management function
  • Risk auditing
  • Risk reporting

Module 6: Ongoing Risk Management

  • Continuous improvement
  • Aligning performance and risk

Course Duration:

2 days

  • The course is offered in-house and can be custom made to include specific examples and exercises based on the organisation’s activities.
  • The course is wholly interactive combining theory with role play, team exercises and group interaction.
  • Evaluation happens through participation and group discussion

Who should attend:

  • Risk practitioners
  • Line Managers
  • Internal Auditors
  • Government Agency Management

Previous Facilitator Feedback:

  • Very thorough, knows the subject matter very well
  • An Excellent course.
  • Very good.
  • Good and very informative.
  • It has beneficial insights.
  • Very informative and the facilitator knows his subject very well – was congruent with his audience.
  • It was great, I enjoyed it and Nic is quite clued up.
  • Good course – highly recommended.

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