Mastering Risk Management

GOVERNANCE AND LEADERSHIP

Governance guides the course of the firm, its external and internal relationships, and the rules, processes and practices needed to achieve its purpose. Management structures translate governance direction into the strategy and associated objectives required to achieve desired levels of sustainable performance and long-term viability.

Clarity about roles and responsibilities is a key part of risk governance and of a good risk culture. It is critical that individuals, committees or other groups understand clearly their role and responsibilities and that everybody with whom they deal is equally clear, including investors and other stakeholders.

Most firms will have a governance map. But do they have various dotted lines? ...