What are the main principles of good risk management?
• Risk management should add value to an organization. • Risk management should link to corporate governance. • Responsibility for risk management should link to strategic direction. • Risk management should be embedded in an organization’s objectives, strategy, operating practices and internal culture. • Risk management is a catalyst for change in the organization’s culture. • Risk management is dynamic, not static. When objectives change, risk management changes. • Risk management is systematic, consistent and proportional. • Risk management is specific. • Risk management is evidence-based. • Risk management is transparent and inclusive.
