Description
Course Description
“Today’s business environment is rapidly evolving. There is intense pressure to respond to strategic, cultural, technological, environmental and market changes. A well-devised risk appetite framework provides a way for your company to link strategy and risk management, strengthening risk culture and enhancing performance in these turbulent times.” – RIMS (USA)
In addition to being able to devise an effective risk appetite, it is important for every organisation to be able to outline key indicators and activities that comprise a sustainable, repeatable, and mature enterprise risk management (ERM) programme. Risk reporting can be a powerful communication tool for updating your team on the work you have completed, whether it is reviewing a new process or persuading your boss to take on new ideas or act on something urgent.
This workshop teaches you how to navigate the complex and critical area of risk appetite management, assess your risk maturity and learn how to report risk in an engaging and persuasive manner. Delivered through presentations, interactive storytelling techniques and group work, you will have plenty of opportunities to learn from the experiences of other delegates.
Learning Outcomes
After completing the course, you will:
- Have an in-depth understanding of risk appetite, limits, and tolerances;
- Have an appreciation of the external requirements and guidelines in relation to risk appetite;
- Understand who is responsible for developing, setting, and owning risk appetite;
- Understand how risk appetite can be articulated for a range of risk types.
- Learn how to document risk appetite statements, limits, and tolerances;
- Learn how to integrate, embed, and operationalize risk appetite as decision making tool;
- Be able to access your organisation’s risk maturity and what is required to create value;
- Learn the principles of effective risk report writing;
- Learn how to plan, structure and test out key messages needed for your report;
- Understand how to structure the report and test out the key messages and more.
Target Audience
- Directors and Chief Executive Officers.
- Risk, Compliance and Audit Professionals.
- Finance, Strategy, HR, and Operations Executives.
- Heads of Departments, Managers and Officers.
- All Staff and Business Executives.
Course Contents
Session 1: Introductions and definitions
- Introduction to global vs local emerging issues
- Link between strategy, objectives setting, and performance management
- The importance of having measurable objectives
- Uncertainties, risk, and enterprise risk management
- Risk categories and their importance
- Difference between Key Performance Indictors (KPIs) and Key Risk Indictors (KRIs)
- The corporate governance and questions for the boardroom.
Session 2: Strategic Goals and Risk Appetite
- Risk Appetite – what does it mean? The concept of limit, tolerance, and capacity.
- External guidance, regulations and standards requiring risk appetite.
- Traditional risk appetite articulation methods and their weaknesses;
- Designing and constructing risk appetite risk;
- Stakeholders’ engagement and their expectations regarding risk appetite;
- Who should set the risk appetite Questions for the management and the board;
- Linking the risk appetite to strategy and objectives;
- Risk appetite as basis for decision making and measuring performance outcomes;
- Risk appetite articulation and measurement – quantitative and qualitative descriptors;
- The process of setting and determining tolerance thresholds for each objective;
- How to determine appropriate maximum level of variation from performance objectives;
- Implementing and governing risk appetite – questions for the management and the board;
- Why measure risk appetite and what makes a good risk appetite statement.
- Five tests for risk appetite frameworks.
- Implementing, reporting, and approving risk appetite statements, tolerances, and limits.
Session 3: Risk Maturity Model
- Introduction, history, and definition
- Why is it important to organisations?
- What are the basic principles of the Risk Maturity Audit?
- What are the benefits of conducting Risk Maturity Audit?
Session 4: Risk Reporting
- Introduction, definition, and guide to effective risk report writing.
- Risk reporting process and principles.
- Types of reports, styles, and methods.
- Stating the risk report’s objective clearly
- Audience – telling readers what they need to know
- Identifying and planning a clear report structure
- Communicating and building rapport with readers
- Presentation – engaging readers throughout the report
- Leaving the reader with no doubts about the message
