2010 GRC Wish List: #4 Risk Expertise
John Kelly 270004J7VQ firstname.lastname@example.org | | 0 Comments | 279 Visits
Several months ago I had the pleasure of presenting with Richard Brilliant, Carnival’s vice president and chief audit executive of Audit Services in a Compliance Week webinar titled: “Leveraging the Power of Integrated Risk Management”. Richard began his presentation by asking a very telling question: “Who specifically is best suited to manage risk in your organization?” The answer of course was “Everyone”. After all, enterprise risk management is about managing risks across multiple risk and compliance disciplines as well as across multiple business units. In other words, ERM requires everyone’s participation to be truly effective and risk awareness and expertise must be instilled at all levels of the organization.
Coming in at #4 on the 2010 GCR Wish List, Risk Expertise is something that needs to start at the top. Risk expertise is a skill set that boards are looking for in their executive teams and is something that could potentially find its way into regulatory reform this year.
Sponsored by the UK government and published this past fall, the Walker Review recommends overhauling the boards of banks and other big financial institutions by requiring the Chief Risk Officer to have a reporting line to the risk committee, in addition to strengthening the role of non-executives and giving them new responsibilities to monitor risk and remuneration.
Some of the specific recommendations in the Walker Review include:
It is clear that risk management will be under increasing scrutiny in the UK (and across the globe), and that risk expertise will be increasingly important in 2010.
Do you agree?
Tags: 2010 GRC Wish List