Risk Innovation

As organizations emerge from the financial crisis, CEOs are shifting their focus from crisis management back to strategic growth. As part of strategic growth planning, risk management is an integral process for the attainment of board approval. Often, the internal audit department is called on to pr...

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Bibliographic Details
Published in:The Internal Auditor 2012-02, Vol.69 (1), p.49
Main Authors: Cancino, Fernando, Valencia, Connie
Format: Article
Language:English
Subjects:
Audit departments
Economic crisis
Internal auditors
Risk management
Strategic planning
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Summary:As organizations emerge from the financial crisis, CEOs are shifting their focus from crisis management back to strategic growth. As part of strategic growth planning, risk management is an integral process for the attainment of board approval. Often, the internal audit department is called on to provide assurance that a sound foundation of risk management has been established. The challenge to establishing a sustainable risk management process is finding a practical, yet substantive, approach to identifying and managing risk. An alternative to traditional risk management methods is to align risks to enterprisewide strategy. This strategy-based approach truncates the process by first understanding what the organization is trying to achieve. Once goals are established and key measurements are identified and understood, the next step is to understand the specific threats to achieving the goals. Therefore, it is prudent to analyze risk patterns and identify the relationship between goals and the impact compounding risks may have on achieving the goals.
ISSN:0020-5745