No easy answers or fast solutions to risk management – ACCA
ACCA (Association of Chartered Certified Accountants) has published a recent report demonstrating the impact of external and internal factors on risk management. A major study provides examples of current problems and best practices in overcoming difficulties related to this topic. According to the leading researcher who worked on the report, Dr. Simon Ashby from Vlerick Business School, the implementation of risk management is essential in today’s business environment. More and more organizations, regardless of their field of activity, are willing to invest time and resources in risk management. And the new ACCA report demonstrates how effective risk management can be an important element of success. However, analysts warn that there are no easy answers or fast risk management solutions.
As a result, ACCA formulated a “risk mechanism” – a conceptual model for implementing risk management in an organization. Also, Association suggested recommendations for organizations that intend to improve the effectiveness of their risk management mechanisms, here are some of them:
- effective risk management involves the use of additional formal and informal mechanisms to achieve strategic goals;
- connection between business units and risk management functions, as well as between risk management and internal audit functions of the company;
- risk management function plays a key role in communication and building risk management relationships.