EFFECTIVE RISK MANAGEMENT OVERSIGHT FOR BOARD MEMBERS & EXECUTIVES

Course overview

Participants in this programme will acquire knowledge of the practical and critical success areas in the implementation of effective enterprise risk management oversight. The workshop will provide opportunities for practical exercises in risk management activities and will deal with implementation failures. You will also learn how to avoid pitfalls when implementing risk management, as well as improving existing risk management practices in your organization.

Board members and senior management tasked with establishing, implementing, facilitating or improving current risk management activities and ensuring that significant risks are being managed appropriately, should attend this course. The responsibility of Boards with regard to risk management required by codes of good corporate governance will be discussed in depth and participants will be guided as to how to exercise effective
risk oversight in accordance with best practice.

Course Objectives

After completing this course you will be able to:

  • Understand the entity’s risk philosophy and concur with the entity’s risk appetite.
  • Know the extent to which management has established effective enterprise risk management of the organization.
  • Review the entity’s portfolio of risk and consider it against the entity’s risk appetite.
  • Be apprised of the most significant risks and whether management is responding appropriately.
  • Understand and comply with good governance codes regarding risk oversight and accountability

Course Content

  • What is risk? Develop an understanding of what constitutes risk and its importance from a Board and senior management perspective.
  • The risk universe. Obtain a understanding of the levels of risk, the different categories of risk and the governance of risk within an organization.
  • The relationship between corporate governance and risk. An evaluation of the King codes of good corporate governance and the requirement of the Board to exercise effective risk oversight.
  • International risk management frameworks such as COSO, ISO 31000:2018 to be understood.
  • Regulatory regime and its impact- particularly PFMA.
  • Board’s primary objectives for enterprise risk management- what a Board should expect from risk management in the organization and what information should be provided for a Board to fulfil its oversight responsibility.
  • Risk capacity, tolerance and appetite for risk. This is critical and requires Board approval and understanding.
  • Board organization and structure for addressing risk. Obtaining assurance that the risk are identified, addressed and reported adequately through Board committees.
  • Management approach to enterprise risk- The Board is accountable to ensure that management puts effective risk management structures and practices in place.
  • Interrelationships and compounding effect of risks. It is critical for Boards to understand matters such as inherent, residual and compounding effects of risk.
  • Strategic risks and business risk. To meet its good governance obligations Boards need to discern between which risks are really important for the longevity and sustainability of the organization and which are of a business/operational nature.
  • Risk culture. The Board and senior management need to set the tone at the top of the organization and provide guidance as to what is considered acceptable risk taking.
  • External advice. The Board needs to understand when to obtain external assistance with regard to assessing risk maturity and effectiveness of risk management practice and reporting within the organization.