Wie halten Sie Ihr Risikomanagement transparent?

Risks are the events which may occur in future internally or externally. Based on the nature of Risks, Impact analysis is done and accordingly actions are taken to mitigate/accept/transfer the risk. Every organization should be aware of its potential risks and control action plans. To make the risks management transparent, the first step would be to Document the risks along with the action/control plan. secondly frequent awareness sessions should be taken. Newsletter/Blogs should be circulated weekly so that every person in the organization is aware of the risk management process. Knowledge sharing on already occurred risks and its control action taken.

One should always start with a globally recognized risk management framework. At the same time the framework need to be adapted to suit the organization's need. As part of adaption one need to define: 1. Value system which will guide the end user 2. Policies and Procedures 3. What is acceptable and what is not. 4. Systems to be used, forms to be used, tools to be used. 5. Organizational hierarchy for risk management framework and so on.

Transparency in risk management practices can be achieved through consistent, clear communication. This includes documenting and openly sharing the risk management process, decisions, and outcomes.

It’s team management and framework to be transparent. Because confusion will increase the risk not management.So clarity of thought in everyone’s mind help to curtails the risk.

Make sure that the Risk Management Framework and all its components are easily accessible to all relevant stakeholders in your organization (e.g. published in a dedicated intranet space).

A well-defined risk appetite guides underwriting decisions and pricing strategies. It helps determine the types and levels of risk the company is willing to take on in its insurance policies, ensuring a balance between profitability and risk exposure.

Not only we can set our risk appetite and risk tolerance based on strategy objectives, but also in case that the we are facing poor strategy definition or even a wide range of risks, we can recognize risk appetite and tolerance based on risk category or each principal risks.

Estabelecer apetite a risco e este ser disseminado a todos da organização, também ajuda na transparência com quem é de direito. O apetite e a tolerância a riscos deve estar disposto em normativo específico e monitorados periodicamente com reporte aos stakeholders responsáveis por este tema.

Seja fiel a matriz de risco elaborada pela empresa. Os riscos são exaustivamente levantados quando da sua elaboração e não devem ser alvo de substituição até a elaboração de uma nova matriz. Seja fiel ao trabalho realizado!

This is one area where over simplification or searching for one measure actually derail the process. Risk appetite exist in many organization in the shape of Annual Budget, Operating Budget, Delegation of authority with limits, Code of conduct, organization vision and mission statement. One should define what is a good risk and what is a bad risk to guide teams and set up a monitoring and feedback mechanism to ensure that everyone is aligned.

Implementation must align with your framework and processes as described. Clear roles, responsibilities and accountability are necessary for it to succeed. This also enables you to understand what works and what doesn't in practise. But you must follow the protocols otherwise these will be missed. So it's important to document everything.

Com base nas diretrizes estabelecidas na política de riscos, implementar um processo de gerenciamento de riscos é fundamental para o controle eficaz dos riscos organizacionais.

Implementing risk management process involves documenting relevant policies and procedures to ensure effective risk identification, assessment, and mitigation. This documentation outlines the steps, responsibilities, and guidelines for managing risks within an organization. It includes policies for risk identification, such as regular risk assessments and reporting mechanisms, and procedures for risk analysis, evaluation, and treatment. By documenting these policies and procedures, organizations can establish a consistent and structured approach to risk management, ensuring that all stakeholders understand their roles and responsibilities. This documentation also promotes transparency and accountability, and enabling effective communication

There are different types of risks, such as Financial, Operational, Strategic, Legal, or Reputational risk. Some sources of information that can make Risk management transparent can be as follows:- Risk management policies and procedures that define the roles, responsibilities, and processes for managing risks. Risk matrices that identify, assess, and prioritize the risks and their impacts. Risk treatment plans that specify the actions, resources, and timelines for mitigating or avoiding the risks. Risk reports or dashboards that summarize the risk status, trends, and issues, and provide recommendations or actions. Risk audits or reviews that evaluate the effectiveness and efficiency of the risk management process and practices.

When undertaking risk identification, consideration should include potential ethical, societal, environmental, innovation and technological risks for example. These are often forgotten but are crucial to forming a well rounded risk assessment. The involvement of peers throughout the organization can be hugely beneficial as it provides different perspectives but also helps employees feel engaged and involved. Also when undertaking a risk assessment never forget to include opportunities. Flip the approach on its head a bit and consider what opportunities the potential risks may present.

Reporting should be insightful. With increasing amounts of data being captured, generated and reported, it is important to ignore the noise and keep a laser-sharp focus on those 4-5 metrics that provides you assurance that risks are mitigated well. Examples could be - financial loss due to major incidents, critical controls that have been tested ineffective, asset health dashboard or actions(treatments) that are overdue/blocked due to any reasons.

To ensure a consistent approach, you should develop and outline the procedures for reporting and communicating risk-related information. Specify the formats, frequency, and recipients of risk reports. Also, document the channels and methods through which risk information will be communicated to relevant stakeholders, such as management, board members, or employees.

In my experience maintaining transparent risk management involves clear communication of risks, mitigation strategies, and ongoing updates to stakeholders. Regularly sharing risk assessments, reports, and engaging in open discussions contribute to a transparent risk management process.

From a commodity market risk perspective, risk management reports should be simple to read and yet insightful to the audience (management, traders) reading it. How you evaluate and compute VaR (Value at Risk) for example needs to be transparent in terms of the assumptions used. Educating the audience on what the numbers (exposure, P&L drivers) are and how it is calculated is also important. Transparency leads to better appreciation.

By communicating openly, using clear documentation, involving stakeholders, aligning with business objectives, and regularly reviewing and evaluating practices, companies can demonstrate their dedication to managing risks in a transparent and responsible manner. This not only helps protect the company from potential threats, but also builds trust and confidence among stakeholders, leading to long-term success.

Feedback and input improve the entire process. Every view can help deliver a better program. It should be constructive and put to use where possible. Nothing should be set in stone.

Asking for feedback from stakeholders is like opening a door to improvement. Their thoughts and ideas can help us make our risk management better and more effective. It shows we care about their opinions and want to create a safer environment for everyone.

Effective communication and education is at the core of an organisation's risk management strategy. Regular workshops and training sessions ensure that all team members, from entry-level to leadership, understand the importance of identifying and managing risks in the activities carried out and in protecting the data of their clients. These initiatives aim to create a shared understanding of risk management principles and instill a proactive mindset throughout the organization.

When talks about Risk management transparency, company culture is important. Management should demonstrate its intentions clear and every one in the organization should follow.

Risk management involves identifying, assessing, and prioritising potential threats and possibilities within an organisation. Effectively managing these risks is crucial to prevent adverse situations. Business transparency, at every level of the organization, is essential for this purpose. Moreover, transparency significantly impacts an organization's reputation. It forms the foundation of how a company conducts its business, contributing to the achievement of its goals. Transparency should permeate governance, financial management, and other critical aspects of the company's culture. This approach demonstrates ethical business practices, eliminating negative corporate behaviour and fostering a more favourable business environment.

Establish key performance indicators (KPIs) related to risk management and regularly report on these metrics. Demonstrate the effectiveness of risk mitigation efforts through measurable outcomes.