How do you define risk governance and oversight in your organization?

What I have found helpful in understanding risk governance is having pre defined thresholds which serves as benchmark for governance to escalate. These thresholds are not developed in isolation from business. But with a thorough understanding of business processes, inherent, residual and the business risk appetite.

The Governance of risk within an organisation should not only consider internal and external standards, regulations and local legislation it should consider the strategic direction or plan of the organisation. Like the risk appetite set by the Board or Governing body Risk Governance needs to consider both the negative impact of risk whilst balancing the opportunistic nature of risk in business growth and development. Good risk Governance will set a positive tone for risk management across the organisation where all staff will understand their role and understand that not all risk is "bad".

Set Clear Risk Management Roles: Define who does what in managing risks to ensure everyone knows their responsibilities. Align Risk Strategies with Business Goals: Make sure your approach to handling risks supports the company's main objectives. Ensure Open Communication on Risks: Create a culture where talking about risks openly is encouraged and valued. Regularly Review and Update Risk Policies: Keep your risk management practices up to date with both internal changes and external regulations.

The first step is to educate teams and the Board Directors/Trustees as to exactly what Risk Management is and their responsibility. It can't be assumed that members will bring this information from prior experiences. Once all members have been educated the next step is to tie risk management tools and policies to all aspects of the Board Learning Agenda. This important step ensures that risk management is considered and helps to inform decisions. Adding an understanding and use of risk management is intended to support the CEO and Board of Directors. When used well it makes decision making and benchmarking easier.

Monitor Risk Management Effectiveness: Keep a constant check on how well risks are being managed across the organization. Stay Ahead of New Risks: Actively look for and address new or increasing risks before they become bigger issues. Advise on Risk Management Improvements: Offer constructive feedback and suggestions to enhance the organization's risk handling capabilities. Ensure Risk Reporting is Clear and Useful: Make sure risk reports are easy to understand and provide the information needed for decision-making.

Good risk management includes knowing what to avoid, what to mitigate, what to transfer, and what to retain. To be able to do that, you must have an elaborate system of identifying your risks (which I deem as a "negative future event"). You must think in terms of people, property, and profits. Solid risk governance accounts for all these factors and a way to identify and track them; both on the human/people side and technology. Quantifying and qualifying risks should also be included. Happy to share more if it's requested.

Implement a clear risk governance framework to integrate risk management into organizational decision-making and align it with strategic goals. Establish a robust risk oversight process to continuously monitor and evaluate the effectiveness of risk management practices. Actively identify and address gaps or weaknesses in risk management, leveraging insights for continuous improvement and strategic advantage.

Boost Decision-making Confidence: Ensures decisions are made with a clear understanding of risks and their impacts. Enhance Strategic Alignment: Helps align risk management efforts with the organization's overall goals and strategies. Improve Risk Response Times: Enables faster and more effective responses to emerging risks and challenges. Strengthen Accountability and Transparency: Establishes clear roles and responsibilities for risk management, promoting transparency across the organization.

I really like the point on establishing a risk culture within the organization. As important is ensuring proper communication and thorough understanding of this risk culture at every level of the organization so that risk awareness, management and mitigation are exercised throughout the entire organization.

Tailor the risk governance and oversight framework to the organization's unique characteristics, considering its size, complexity, and nature. Develop a dynamic risk process to cover all aspects from identification to treatment and reporting, adaptable to changing circumstances. Regularly evaluate and update the risk governance structure to ensure its alignment with evolving organizational goals and the external environment.

Enhance Strategic Alignment Boost Stakeholder Confidence Streamline Risk Management Processes Strengthen Organizational Resilience Improve Operational Efficiency Increase Agility in Response to Risks Demonstrate Responsible Risk Management Reduce Duplication and Confusion Promote Transparency in Decision-Making Foster a Culture of Innovation Enable Informed Risk-Taking Create Value and Growth Opportunities

There is a lot of talk about corporate cultures, goals and training. However, as the people, the employees, should live the corporate culture, it is crucial for me that the people feel "personally affected". Otherwise the content remains abstract.

Regulatory Compliance Emerging Risks and Trends Technology and Data Analytics Stakeholder Engagement Ethical Considerations and Corporate Social Responsibility Training and Education Global and Cultural Factors Continuous Improvement and Change Management Crisis Management and Contingency Planning Board and Executive Leadership Involvement External Audits and Independent Reviews Financial Implications and Cost Management Industry-Specific Risks Legal and Contractual Obligations Communication and Transparency Strategies