Managing risk is always important to an organisation, with new risks emerging all the time. And in the current economic climate, the emphasis on cost reduction can lead to increased risks such fraud.
Boards have become even more sensitive to the pitfalls of poor risk management. An unanticipated crisis can cause immense disruption, cost a lot of money to rectify and damage an organisation's reputation. However, boards are also beginning to recognise the wider benefits of good risk management including improved performance.
In practice, making this work can be a challenge. The majority of organisations still view risk management as a support function, rather than an integral part of good decision making. And many struggle to define their risk appetite and then embed a risk management framework into their organisation.