enhancing readiness for change and/or what otherwise may have been 'the unexpected'
minimising the frequency and/or magnitude of losses
evidences robust framework for regulatory compliance and Internal Audit '3rd Line of Defence' assurances
facilitates proactive identification and communication of inherent risks and therefore allows better appreciation of potential effects on profits and or capital financing
helps a more confident and informed approach to investment in new projects and value creation.
2. Helps Establish Competitive Advantage by
integrating risk management with strategic planning/management e.g. building distinctive/unique competencies, identify business opportunities that match core risk management competencies, etc
the application of ever more increasingly effective risk assessment methodologies
protecting corporate reputation and brand image
more cost effective application of available resources e.g. removing unnecessary/duplicative controls, more cost effective solutions to common/corporate-wide risks.
3. Optimises the costs of risk management by
applying a systematic and consistent methodology across the whole of the organisation (rather than in a 'scatter gun' manner)
ensures strategic planning and management processes are aligned with the entity's risk appetite and therefore the potential cost of unmitigated risks are appropriately assessed and understood
understanding the cost effectiveness of alternative risk mitigation options e.g. risk transfer via insurance.