As organisations, products, services and channels change, the risk function has to evolve to manage and mitigate risks, but also to create value out of risk.
With corporate regulators asking more and more out of the risk function, and putting more compliance processes in place, boards are now laser focused on how the risk function can add value to the business rather than simply acting as a cost centre.
This means many organisations need to reimagine how the risk team functions, where it sits and, most importantly, how to embrace conscious risk taking to create the value companies need to offset the costs of compliance.
In an Australian context, many companies have risk departments that simply tick boxes when it comes to risk management. But it's time to revolutionise how this team functions to it is empowered to think creatively around how they can leverage the risk agenda to help drive the company's overall business objectives.
There are five key ways to approach this kind of transformation. Some of our clients have had significant success with these approaches:
Like it or not, a changing risk environment is fundamentally shifting the goal posts for organisations around the world. It's always a challenge to manage compliance and other forms of risk – but the opportunity to benefit is just as significant as the challenge.
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