Managing Risks - A New FrameworkA New Framework Svana Helen Björnsdóttir CEO of Stiki President of...
Transcript of Managing Risks - A New FrameworkA New Framework Svana Helen Björnsdóttir CEO of Stiki President of...
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Managing Risks –
A New Framework
Svana Helen BjörnsdóttirCEO of Stiki
President of the Federation of Icelandic Industries (SI)
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Manage Risk
To manage risk means to coordinate
activities - to direct and control an
organization with regard to risk
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Not only a compliance issue
Rules-based risk management will not
reduce either the likelihood or the
impact of many severe disasters
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Risk Management Framework
Set of components that provide the
foundations and organizational
arrangements for designing,
implementing, monitoring, reviewing and
continually improving risk management
throughout the organization
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HOW?
How can organizations identify and
prepare for non-preventable risks that
arise externally to their strategy and
operations?
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Rules or Dialogue?
• Understand the qualitative distinctions among the
types of risks that organizations face
• Match risk management approach to the nature of
threats
• Risk categories:
– preventable risks
– strategy risks
– and external risks
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Risk Management Framework should*
• Increase the likelihood of achieving objectives
• Encourage proactive management
• Be aware of the need to identify and treat risk
throughout the organization
• Improve the identification of opportunities and
threats
• Comply with relevant legal and regulatory
requirements and international norms* ISO 31000:2009 Risk management – Principles and guidelines
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Risk Management Framework should
• Improve mandatory and voluntary reporting
• Improve governance
• Improve stakeholder confidence and trust
• Establish a reliable basis for decision making and
planning
• Improve controls
• Effectively allocate and use resources for risk
treatment
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Risk Management Framework should
• Improve operational effectiveness and efficiency
• Enhance health and safety performance, as well as
environmental protection
• Improve loss prevention and incident management
• Minimize losses
• Improve organizational learning
• Improve organizational resilience
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Principles for effective Risk Management
• Creates and protects value
• Integral part of all organizational processes
• Part of decision making
• Explicitly addresses uncertainty
• Systematic, structured and timely
• Based on the best available information
• Tailored
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Principles for effective Risk Management
• Takes human and cultural factors into account
• Transparent and inclusive
• Dynamic, iterative and responsive to change
• Facilitates continual improvement of the organization
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Framework
Mandate and commitment
Design of frameworkfor managing risk
Continual improvementof the framework
Implementingrisk management
Monitoring and reviewof the framework
Principles
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Process
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The Challenge