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RISK MANAGEMENT
Risk Management Strategy
The risk management strategy of an entity should include:
• The risk appetite of the entity (risk averse / risk neutral / risk seeking).
• Risk identification and assessment processes of the entity. Risks can be
identified by using a variety of methods:
• SWOT analysis
• PESTLEGE analysis etc.
Companies Act of 2008: All identified risks must be recorded in a risk register. The risk should be
described and assessed/measured (based on their potential impact and likelihood).
• The entity’s preferred risk responses (avoidance / acceptance /
mitigation).
• The person who is directly responsible for the entity’s risk
management.
• Reporting to stakeholders and monitoring the effectiveness of the risk
management process.
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