Risk management is not the responsibility of a single department.

It is everyone’s responsibility, from the chief executive down. Past corporate failings have been attributed to lack of accountability, strategy and transparency.

Tougher expectations by regulators and other stakeholders now mean that corporates should demonstrate better discipline, control and responsibility. Failure to keep on top of and comply with existing and emerging regulation could jeopardize reputations and livelihoods. How robust is your governance, risk and compliance program?

Financial risks have probably never been more acute. Capital reserves, credit portfolios, investment policies and capital and debt profiles all demand constant scrutiny to adequately manage and mitigate risk.

Companies should also be vigilant about risks presented by suppliers. A counterparty who defaults on a contract, or whose business collapses, can have serious financial and reputational ramifications for connected parties.

Fraud risks can also increase when cash is tight. Some employees become more opportunistic — and external hackers, more resourceful. They find security lax in areas of the business that used to be better resourced and they strike. Are your systems and policies sufficiently robust to ward off the risk of fraud?

At the same time, many companies are more likely to pursue litigation for losses that they would otherwise endure in more prosperous times. Disputes arise as they seek to apportion blame to other parties for inappropriate or negligent behavior that results in financial or business loss. Could you end up as instigator or defendant in a litigation case?

With all these demands, often internal audit is elevated from pure compliance to a function that regularly reviews the risk profile for emerging risks and identifies trends while keeping its finger on the pulse of business performance. The chief risk officer, meanwhile, becomes increasingly involved in strategic decision-making where the emphasis is as much on risk as it is on growth.

Fortify your business. Our professionals provide the experience to help companies stay on track and deal with risks that could unhinge their business survival.

 

How we can help

KPMG’s Internal Audit Risk & Compliance Services (IARCS) deploys multidisciplinary teams of professionals experienced in financial and operational internal auditing, IT, fraud analytics and risk assessment, shared services, finance management, treasury and financial instruments, and the supply chain to augment and enhance an organization’s existing internal audit capabilities.

It works to make internal audit functions, enterprise risk management programs, and risk and controls management more efficient and effective.Hot button issues for business leaders include a range of complex matters, including:

• Board advisory services
• Contract compliance
• Enterprise risk management (structure, risk identification, monitoring, reporting, optimizing)
• Financial risk management
• Financial services regulatory compliance
• Internal Audit strategic sourcing (right resources, right place, right time)

The internal audit function and risk and controls management are often at the forefront in dealing with these matters. Their effectiveness and efficiency can have a major influence on corporate performance and business outcomes.

 

 

Risk Management Consultant of the Year, Asia Risk Awards 2022