What effective risk management involves

COMPANIES need to fundamentally shift their thinking about risk management and use it as a strategy to spur their growth objectives, say experts.

"Risk management should not be viewed as a compliance tool to satisfy regulatory, disclosure or reporting requirements," said Neo Sing Swee, a partner with EY, who advises the professional services firm's clients in risk management practices.

"This gives the perception of having to deal with overwhelming mundane risk reporting activities with little or no linkage to business operations or performance."