Should companies organize interdisciplinary risk-management teams to oversee a companys risk assessment?
Fodera: It must be interdisciplinary to be successful. Each part of the company needs to be looked at and you need to engage the process owners from each of those different company units. You need to identify and have all parts of the company give their input for an overall risk management profile for the company. The other key aspect of that is that you need to set the guidelines so that everyone is on the same page. Everyone needs to understand the commonly defined terminology in terms of risk appetite or risk tolerance. Once you identify and define the terms in a risk management program, each of the process owners of the disciplinary units can actually understand and rank it accordingly so you come up with one approach for the company. Editor: How frequently should major risks be evaluated? How should risks be classified? Fodera: Many boards are requiring a more frequent risk management process. In order to stay current, annual formalized risk assessments are being updated on a more
Related Questions
- Accounts Receivable - The department of a large company whose function is to send bills to companies that owe money. Theres more to it than that, but who cares?
- What is the rate of assessment that companies will pay and how will each company know their competitors will pay a comparable rate?
- Should companies organize interdisciplinary risk-management teams to oversee a companys risk assessment?
