If the pandemic has taught us anything, it’s that every company needs to have a robust risk management plan in place, and board members play a pivotal role in setting and overseeing an effective risk management plan.
Here are the areas your risk management plan should include.
9 questions every board member should ask about risk management
All risk management plans should be broken into three distinct parts – environment, assessment and monitoring – here are three questions every board member should ask in each area.
Risk environment
1. What is the organisation’s appetite for risk in the pursuit of building shareholder values?
2. Are risk governance and management responsibilities clearly defined at all levels of the organisation?
3. Is there a process in place for identifying and collecting information about new or changing risks?
Risk assessment
4. Has a risk assessment framework been customised to consider risk characteristics that are most critical across the organisation?
5. Are risk identification and assessment linked to the business strategy?
6. Do existing controls and processes adequately mitigate identified risks?
Risk monitoring
7. Are all identified risk metrics properly aligned with strategy objectives to serve as indicators of potential problems?
8. Is risk management embedded in planning, communications and training activities across all functions?
9. Is the dialogue and reporting of risk throughout all organisation levels, including the boardroom, open and ongoing?
8 Steps To Develop A Risk Management Plan
How a conference call can help with risk management
All risk management plans should include contingencies for any risks to business, including loss of office space or staff’s inability to get to the office. In either case, having a reliable and simple conference call provider in place can help with that, allowing employees to keep in touch and hold meetings remotely, from anywhere there is a phone line or signal.
