Drivers for risk management:
- protect the organisation and its brand
- unpredictable global economic environment
- corporate mandate to institute / improve risk management
- compliance with new and / or changing regulations
- maintain / improve shareholder and customer confidence
- stakeholder demand for operational and program efficiencies
Challenges to risk management:
- insufficient resources (e.g. lack of capital, tools, in-house expertise)
- competing priorities / initiatives
- corporate culture (e.g. resistance to change, company processes)
- lack of executive sponsorship
Recommendations:
- establish an operational risk management strategy to manage risk across the enterprise
- enable a risk based culture by establishing collaboration across function teams
- establish processes to align asset performance to financial performance
- invest in APM software solutions that provide role-based real time and historic asset data as actionable intelligence as well as analytical capabilities for predictive insights
