Risk and peformance: Embedding risk management

Abstract

A new report from ACCA (the Association of Chartered Certified Accountants) uncovers how board-level risk management activities vary in organisations as a result of internal and external factors. The report, Risk and performance: Embedding risk management, highlights common challenges and good practices to overcome risk management difficulties. The research was conducted by Professor Simon Ashby (Vlerick Business School), Professor Cormac Bryce (Cass Business School) and Professor Patrick Ring (Glasgow Caledonian University). The study combines findings from four in-depth case studies including interviews as well as a review of current academic literature. The insights were consolidated to create the ‘risk gearbox’, a conceptual model for embedding risk management in organisations. It shows how formal and informal risk management mechanisms combine to create ‘strategic thrust’ to support the board decisions on strategic risk taking and control. There are also a number of recommendations for organisations looking to improve the effectiveness of their risk management arrangements.