Share these talks and lectures with your colleaguesInvite colleagues
Enhancing the links between risk appetites and risk processes embedded in the business
Risk management is consistently evolving and revolutionising the manner in which we manage and grow businesses. A few years ago ‘risk appetite’ was merely a theoretical concept. Now this concept manifests itself as the nervous systems of companies whereby risk appetites are developed for the major risk groups using sound practice guidance; documented in risk appetite statements (RAS). The recent Klynveld Peat Marwick Goerdeler (KPMG) ‘Risk and ICAAP benchmarking survey1 in 2017 tell us that there are disconnects between risk appetites and risk taking activities. Resolving this disconnect is a powerful empowerment tool enabling faster and more efficient strategic growth in a responsible manner. PricewaterhouseCoopers (PWC) also issued a survey2 in 2017, ‘Managing risks from the front line’, stating that empowering employees in a risk aware manner enables a more engaged first line rigorously balancing decisions between risk and strategy. This ultimately results in better net profits and stakeholder (including customer) experience. Companies who have integrated risk appetites with risk taking activities thereby moving risk management into first line reported better performance than those who have not. The methods described in this paper enhance the links between risk appetites and risk taking activities, promoting healthy growth aligned to the above survey results. It transforms a firm from being reactive to becoming strategic and proactive.
The full article is available to subscribers to the journal.
Liezl De Villiers Getz is the head of operational risk identification at Aviva Investors. She is responsible for establishing, maintaining and overseeing the embedding of the Risk Management Framework, Risk Register, Risk Appetite Statement and related monitoring measurements. She started her career at KPMG (South Africa) in its financial services audit division and formed part of the financial engineering group responsible for specialist expertise in risk management and quantification of financial instruments and investment structures. Before joining Aviva Investors, she was previously at KPMG (United Kingdom) where her primary focus was the development and implementation of risk and control management frameworks, policies and processes as well as technical reviews of internal controls reports. She holds a bachelor in accounting honours degree from the University of Stellenbosch, is a qualified Chartered Accountant registered with the South African Institute of Chartered Accountants and is a member of the Institute of Operational Risk.