An understanding of risk is essential for the board to carry out its strategic and oversight roles effectively. Regulators and investors increasingly expect boards to be the driving force for improving risk management and overseeing compliance in their organization.
A successful strategy needs to take into account the impact of risks that are external to the company - systemic risks such as climate change, technological advances and political or regulatory developments in the markets in which the company operates. The board also needs to be clear about the scale and type of risks that it is willing to take in pursuit of the strategy.
Even the best strategy can be undermined by a failure to manage the risks inherent in the company’s operations, including those relating to ethics and behaviors. If they materialize these risks could impair the company’s performance or destroy its reputation. Management and the risk and compliance functions bear direct responsibility for ensuring this does not happen, while boards need to exercise regular oversight and set the company’s culture and values.
Nestor Advisors offer a range of services to help companies set their risk strategy, map and monitor key risks and assess the effectiveness of their risk and compliance functions. These include:
- Assessing the company’s risk culture - Identifying, mapping and assessing key factors influencing the company’s risk culture in relation to the board’s expectations and strategic aspirations;
- Undertaking integrity and compliance risk assessments - identifying the company’s compliance risks and assessing the adequacy of the company’s policies and procedures to address them;
- Undertaking external reviews of the effectiveness of the risk and compliance functions - including their compliance with regulatory requirements and standards;
- Structuring risk and compliance functions - assisting companies in setting up these functions, drafting policies and developing implementation plans;
- Designing risk mapping and assessment methodologies - including assisting in the first mapping exercise; and
- Developing risk dashboards for monitoring key indicators - including providing training on its use.
For more information on our risk governance and compliance services, please click here.