Make better decisions with effective risk management

Risk Management

Our solutions help you to ensure strong operational, as well as enterprise risk management and programs with the alignment of culture and business strategy.

Troops from the Japan's Ground Self-Defense Force 1st Airborne Brigade dive from a C-1 transport plane during an annual new year military exercise in Narashino, east of Tokyo January 11, 2009.
REUTERS/Toru Hanai

Coming to grips with risk culture

Organizations often struggle to understand what constitutes a good risk culture and how they can create one. Is it “tone from the top” that creates the right environment? Or is it a good framework? What kinds of activities should be undertaken – scenario analysis, economic capital modeling, risk control self-assessments, or all three?

Creating actionable intelligence

It’s becoming clear that a good risk appetite framework, grounded in the particular issues an organization and industry are facing, is a good place to start. But making that risk appetite come to life is a much bigger challenge. Organizations need to have the right people, resources, and solutions in place to ensure that their risk appetite program doesn't get derailed by the process of delivering risk analysis.

Implementation of the risk appetite should be focused on delivering the right actionable intelligence to key stakeholders, such as the business lines, senior management, and the Board. It is with this information that a true risk culture can be created. 

Fostering a risk culture

Organizations seeking to create or improve their risk culture should consider the following questions:

  • How do stakeholders understand risks in the context of our organization?
  • Is risk appetite communicated effectively in our organization?
  • Do our business units understand their risk profiles? Do they act on that knowledge?
  • Does our Board feel that it is getting the right risk information?
  • How could improved risk management generate improved margins for our business?
  • What kind of input does the risk management function have into the formulation of business strategy?

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