Why should organisations invest time and effort into developing, maintaining and utilising risk registers?
Using a risk register to capture, organise, manage and utilise risk information is commonly perceived as a component of strong governance.
For example, the Financial Reporting Council establishes a number of requirements[1] for risk management that a risk register will help to deliver, including the following:
A company's systems of risk management and internal control will include: risk assessment; management or mitigation of risks, including the use of control processes; information and communication systems; and processes for monitoring and reviewing their continuing effectiveness.
The board should define the processes to be adopted for its on-going monitoring and review, including specifying the requirements, scope and frequency for reporting and assurance.
A risk register is far more than simply a way of achieving compliance with governance standards. Effective risk registers can also be a strategic and operational tool capable of adding significant value to your organisation.
Why should your organisation have a risk register in place?
We set out five clear reasons explaining how your organisation will benefit from a risk register:
A strong risk culture encourages all individuals within an organisation to acknowledge their responsibility for managing risks and to play an active part in the risk management process.
Designing, developing or enhancing a risk register
There is no one-size-fits-all risk register. Every organisation must consider the data they aim to capture, the logistics of maintaining an updated register, utilising its outputs effectively, and determining the format for presenting risk information. Clear, concise and consistent data enables robust reporting.
A risk register can significantly enhance your organisation’s ability to meet expected governance standards but, when appropriately designed, it can also achieve this in an engaging and empowering way.
Ready to optimise your risk management strategy? Contact us for more information on how WTW’s risk register tool can help you and your organisation.
Footnotes
- “https://media.frc.org.uk/documents/Guidance_on_Risk_Management_Internal_Control_and_Related_Financial_and_Business_Reporting_September.pdf. Return to article
- “https://media.frc.org.uk/documents/Guidance_on_Risk_Management_Internal_Control_and_Related_Financial_and_Business_Reporting_September.pdf. Return to article
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