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Tips for managing risks
KPMG'S head of risk consulting, Irving Low, highlights some key ways that companies can effectively manage their risks:
- Use data analytics to catch things that are falling between the gaps. These include key spikes, trends and other telltale signs that more investigation is needed.
- Ensure that risk management is integrated with business processes themselves, rather than as another process running in parallel.
This ensures that good risk and control habits are directly embedded in the day-to-day activities of a company. A key role of the risk function is to help review these processes.
- There is an ongoing tension between risk management and the growth of the business so you do not want to put in more processes that may stifle innovation or hamper growth. This must be a practical, measured approach to determine the costs versus the benefits of making any changes.