As the nature and number of threats to an organisation multiply and the regulation around managing them becomes ever more complex, the Board need tools to help them fulfil their responsibility for understanding the institution’s risks and overseeing its risk management framework. As someone who has engaged with Boards for over twenty years and who is currently an independent non executive director and member of the audit and risk committees of two regulated financial institutions, our founding partner is well placed to provide a Board perspective on a variety of risk subjects .
RMA and its antecedents have advised on a number of important building blocks in a sound risk management framework, including:
- Establishing a Board Risk Committee or adapting the Audit Committee to include Risk oversight
- Establishing the Executive Risk Committee
- Setting up a Three Lines of Defence management model and training the Board and Executive to understand and operate it
- Designing, recruiting and training the risk function
- Establishing and managing risk appetite
- Identifying and managing emerging and extreme risks
- Defining and monitoring risk culture
- Advising on the process and focus for ongoing risk management throughout the business cycle
- Effective self assessment of the risk framework
- Providing meaningful assurance to the Board
Our founding partner’s last corporate role was to design, implement and embed a complete risk management framework for AIA following its demerger from the AIG group. As a result, much of the advice in these areas has been tested in a practical environment.