Risk Intelligent Governance: A Practical Guide For Boards
Source: Deloitte LLP
This paper aims to give board members a practical, action-oriented guide to enabling and executing Risk Intelligent governance. At the heart of the paper are six sections describing "Areas of focus," each of which represents the view as a key facet of risk governance. In each section, you'll find a brief description of the intended goals of that area of focus; a list of suggested actions that can help you pursue those goals; a sampling of questions that can help jump-start discussions among yourselves and with management; and a list of selected tools, proprietary to Deloitte, that facilitate the execution of your responsibilities. At many organizations, risk governance and value creation are viewed as opposed or even as mutually exclusive, when in fact they are inseparable. Every decision, activity, and initiative that aims to create or protect value involves some degree of risk. Hence, effective risk governance calls for Risk Intelligent governance - an approach that seeks not to discourage appropriate risk-taking, but to embed appropriate risk management procedures into all of an enterprise's business pursuits. Deloitte's concept of the Risk Intelligent Enterprise integrates nine principles related to the responsibilities of the board, senior management, and business unit leaders into a cohesive risk management framework. Risk governance is at the apex of the framework: the unifying touchstone and guide to all of the organization's risk management efforts. But on a more detailed level, what does effective Risk Intelligent governance entail? Based on our experience working with boards in their risk governance efforts, Deloitte have identified six distinct actions a board can take to help enable a Risk Intelligent governance approach.