In the first of a two-part series examining how risk management can be leveraged in a cost-effective way to underpin sound governance, Ted Dahms outlines the close relationship between risk and objectives
This two-part article was prompted by recent contributions to Risk Management, "We Need a Common Definition of Risk" and "Tuning in for the Results", both of which appeared in issue 46 of this magazine, in November last year. It is not intended to directly address or critique issues raised in the previous articles but as a further conceptual contribution to the understanding of risk management, control, corporate governance and compliance. The core conceptual view in this article is that corporate governance is an organisation's strategic response to risk, that is, the short answer to the question posed in the title of this article is 'yes'.
The current enterprise-wide concept on risk management has the process undertaken across all areas of an organisation. In application however, risk management continues to exist as a discrete activity without clear integration as part of normal business practice.
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