As risk management becomes increasingly important in today¡¯s global business climate, the role of risk manager continues to grow and change. David Leahy, a partner in the KPMG Internal Audit Department (one of the largest professional services firms in the world), analyzed this phenomenon in yesterday¡¯s Business Daily, which is published out of Kenya. The article, titled ¡°The Evolution of Risk and Controls,¡± highlights the fact that some major companies are realizing the importance of implementing new business techniques rather then spend too much time observing.
¡°A new dynamism is evident in the risk appetite of global organizations,¡± writes Leahy. ¡°They are growing in confidence in their ability to align risk and controls management with strategy. Risk is no longer seen as reactive and defensive but is becoming proactive and creative. The risk and controls relationship between the business unit and the corporate centre is in flux both culturally and structurally. As this strategic shift gains momentum, the watchwords going forward are communication, coordination and collaboration – both internally and through co-sourcing arrangements with trusted advisers and stakeholders.
¡°No longer are organizations constrained by a mindset that dictates – if it can¡¯t be measured, it doesn¡¯t exist. No longer is risk and controls synonymous only with finance. As leading edge corporations move beyond Sarbanes-Oxley and other regulatory and compliance regimes, the outlook is more strategic, more performance related and more enterprise wide. Above all, the focus will become qualitative as the true impact of non-financial risk on areas such as reputation, brand equity and Corporate Social Responsibility (CSR) is understood.¡±
Leahy concludes his article with a quote from Mike Nolan, the Global Head of Internal Audit Services at KPMG: ¡°Only if risk and assurance becomes part of the everyday language of business management, can it act as the catalyst for corporate transformation and optimum performance.¡±
Pearl Gabel
(¹ßÃé: RM Magazine) |