Risk function of the future is KPMG's approach to helping clients design, plan, prioritise and implement change in risk management. The pressure is on. Risk must innovate its operations, challenge traditions, push boundaries and step into a leadership role in order to steer organisations through immense challenges in a technology powered world.
After years of boosting resources to meet continual regulatory changes, all eyes are now on risk to add deeper value. It must help protect strategy and goals against a volatile economy, disruption, competition and globalisation – as well as mitigating the threat of poor culture, conduct and cyber risk. Our clients tell us, inter alia, that:
Heightened local and global regulation with further scrutiny, will result in risk coming under fire if it fails to evolve and keep pace with business and environmental changes. Continuing to add further resources is not a sustainable solution.KPMG sees an emerging need for a technology driven function that is aligned with strategy and led by a Chief Risk Officer with the right skill set to take a seat at the executive table. Of course, compliance remains essential. But risk must embrace the power of technology, rethink its approach to assessing culture, and up skill to position itself as a leader. It must add a strong competitive edge to its organisation. This is particularly important in the mining sector where risk management is entrenched through the business through management by multiple functions all reporting through their individual risk profiles. Already, technology provides an opportunity for streamlining multiple risk processes as well as aggregating and considering interconnectedness of risk. These opportunities are increasing exponentially and to remain relevant in the fast changing world, risk functions will need to adapt as well.
In our first thought leadership on this topic for the mining sector, KPMG summarises the impetus for evolution of mining risk functions as well as the characteristics expected of the risk function of the future.