Yakub02
Banned
Components of effective risk reporting The required content of effective risk reports can be stated using the following five components that would be expected in an effective risk management system:
risk agenda; risk assessment;
risk response;
risk communication; and
risk governance.
Risk agenda This explains the reasons for undertaking risk management activities and expected benefits from doing so. Good risk reports would include the following:
a clear statement of the drivers for the company when planning and undertaking risk management activities; a description of the benefits from the risk management processes established; and
information on resources allocated to risk management activitiesRisk assessment Good risk reports would include the following: a clear description of the procedures in place and information used to identify risks;
an explanation of how risk is evaluated;
a list of significant risk. Risk response Good risk reports would include the following:
description of appropriate responses for each risk; information on how the efficiency and effectiveness of existing controls is assessed; description of disaster response and business continuity plans. Risk communication Good risk reports would include the following:
a description of how risk management processes and responsibilities are communicated throughout the company; information on risk management recordkeeping and on risk reporting and whistleblowing arrangements in the company.
risk agenda; risk assessment;
risk response;
risk communication; and
risk governance.
Risk agenda This explains the reasons for undertaking risk management activities and expected benefits from doing so. Good risk reports would include the following:
a clear statement of the drivers for the company when planning and undertaking risk management activities; a description of the benefits from the risk management processes established; and
information on resources allocated to risk management activitiesRisk assessment Good risk reports would include the following: a clear description of the procedures in place and information used to identify risks;
an explanation of how risk is evaluated;
a list of significant risk. Risk response Good risk reports would include the following:
description of appropriate responses for each risk; information on how the efficiency and effectiveness of existing controls is assessed; description of disaster response and business continuity plans. Risk communication Good risk reports would include the following:
a description of how risk management processes and responsibilities are communicated throughout the company; information on risk management recordkeeping and on risk reporting and whistleblowing arrangements in the company.
