Risk Intelligence to Drive Better Business Decision Making
Many top-performing businesses aren’t just risk aware, but rather risk intelligent. Such a posture helps prepare companies for a major event and can demonstrate to a regulator or auditor that an appropriately strong control framework is in place. Better still, companies gain real strategic value from a “risk adjusted” understanding not only of their threats and vulnerabilities, but also the upside opportunities associated with various risks. It starts with having both qualitative and quantitative information to identify, assess and manage risks.
Strategic risk management, at its core, is about creating value by increasing transparency and accountability, and quality of information. More than a mere compliance exercise, effective risk management enables more informed strategic decision making, increased accountability and transparency, a greater likelihood of organizational success, and – ultimately – competitive advantage, as borne out by many studies that correlate risk management and financial results.
Companies seeking to reach such a state must address a range of critical questions:
- Do you know which risks your company must take to thrive – and how to manage those risks to assure success?
- Does the Board have confidence that key executives and leaders understand the risks that matter most for the specific business units or functions and the entire enterprise?
- Which risk management tools and methods are used to reduce uncertainty and help ensure a strategy’s success?
- Can the company maneuver the tradeoffs between risks and opportunity to generate more value?
- Are the potential impacts of top risks on capital and solvency understood for both normal and stressed conditions?
- Can your company leverage risk management as a decision support tool, reducing uncertainty and unleashing well-informed risk taking to grow value?
Strategic Enterprise Risk Management Services from Infinitive
Risk Governance and Oversight:
- Risk Governance and Organizational Structure Analysis and Recommendation: Development of a risk governance structure, organizational positioning and associated roles and responsibilities for risk function
- ERM Policy and Committee Charter(s): Recommended strategy for and structure of board and/or management-level risk committees, and charter development
Risk Management Framework:
- Risk Program Assessment & ERM Capability Maturity Model Analysis and Roadmap: Assessment of current ERM capabilities and determination of desired maturity level; planning and timeline
- ERM Program Strategy and Toolkit: Development of strategic plan, an ERM program statement, and multi-year roadmap and activities
- ERM Framework Analysis and Recommendation: Analysis of frameworks relative to organizational structure, processes, style and culture, with a recommendation for adoption
- ERM System Evaluation, Selection and Implementation Support: Comprehensive look at available technologies, market benchmark studies, requirements gathering, RFP development, selection criteria and scoring, demo support and vendor evaluation
- ERM Training, Awareness, and Communication: Design, development and delivery of program to address immediate learning needs regarding ERM, ongoing education, advanced training and communications plans
- Risk and Organizational Strategy Alignment: Linkage between vision, mission and strategic objectives with the overall risk philosophy, approach and management technique
- Risk Appetite Statement, Tolerance Thresholds, and Governance Protocols: Profiling of acceptable risk levels and types in pursuit of objectives, the development of risk appetite statements and the establishment of tolerance “guardrails” and limits
Risk Assessment and Treatment Process and Tools:
- ERM Process Flows and Operational Procedures: Processes and procedures required to successfully implement and sustain ERM frameworks
- Risk Identification, Assessment and Prioritization: Facilitated leadership workshops to identify, document, evaluate and prioritize enterprise risks
- Risk Response Plan Design, Development and Schedule: Evaluation of various risk treatment options and costs and development of response strategies
Risk Dashboard and Reporting:
- Risk Monitoring and Reporting: Design of early warning systems and key risk indicators and the development of risk reports and dashboards for all levels of management
Own Risk and Solvency Assessment (ORSA):
- ORSA Strategy and ORSA Report Development: Risk advisory for Own Risk and Solvency Assessment (ORSA) strategy and ORSA Report development (for Insurance Industry Clients). ORSA principles of sound ERM practices and consideration of solvency/capital implications of top risks can be leveraged for risk and opportunity trade-off decisions by all clients