Effective risk management requires the use of complementary formal and informal mechanisms to achieve strategic objectives, according to a new report by Cass Business School for the Association of Chartered Certified Accountants (ACCA).
The report, called Risk and performance: Embedding risk management, discusses how board-level risk management activities vary in organisations as a result of internal and external factors. It says that communication is vital between business units and functions, as well as communication to/from the risk management function and internal audit function. The researchers also found that the risk management function has a pivotal role in communication and building risk-management relationships.
This article was first published in June 2019.