Page 207 - SBL Integrated Workbook STUDENT 2018

Managing, monitoring and mitigating risk

2.2 Embedding risk

The aim of embedding risk management is to ensure that it is ‘part of the way we do
business’.

Considered at two levels:

 embedding risk in systems

 embedding risk in culture.

In systems:

 ensuring that risk management is included within the control systems of an
organisation

 a control system helps ensure that other systems (e.g. the accounting system)
are working correctly

 not seen as a separate system

 embedding risk management needs approval and support from the board.

Note: In many jurisdictions, this is a statutory requirement (e.g. US) while in others it
is a code of best practice (e.g. UK).

In culture:

 needs to be embedded into policies and procedures in an organisation

 all workers in a company (board to employees) accept the need for risk
management

 embedding into culture and values therefore implies that risk management is
‘normal’ for the organisation.

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