Integration
Integrating Risk Management with Strategy Execution
The best risk management programs have a strong focus on integrating risk management capabilities with underlying business processes and culture. Benefits can include an improved focus on value creation, development of new capabilities, and greater transparency around risks (both downside and upside).
Alignment and integration begins by understanding existing planning and risk management elements:
- Terminology -- Objectives, strategies, risks and plans
- Business culture and desired behaviors
- Board reporting and risk management reporting standards
- External business drivers and trends, and upside and downside risks in business plans
- Risk inventories and emerging risks
- Performance monitoring, metrics and risk appetite
- Business plan templates and risk plans
A focus on risk provides balance in strategy discussions.