Good Governance Guides

Good Governance Guide: No 6.3

Category: Transparency
Subject: Risk Management
Source: Chartered Secretaries Canada

The first acknowledgement is that risk management is not new. It should be an integral part of both the Strategic and Business planning process and, as such, is a discipline subject to continuous measurement throughout the organization. Its benefits are numerous and include:

• The reduction in surprises;
• Improved resource allocation;
• Improved governance;
• Maintenance of the integrity of internal controls;
• Improved insurance rates and agreements;
• Improved and more informed decision making; and
• Better appreciation of realistic expectations.

Risk management necessarily leads to a better management of change in the context of uncertainty.