Qualified Risk Director (QRD®): Directors’ Guide to Risk Maturity Frameworks
An organisation’s risk management capabilities, along with the board’s risk governance processes, may be assessed according to their “maturity”—that is, where they reside on a curve that progresses toward Risk Smart and Risk Intelligent cultures. From ad hoc practices to formal and embedded processes, and various stages in between, there is no definitive threshold that all organisations should achieve. But there is a level of maturity that is right for each organisation, and it depends on how capable that organisation needs to be in order to manage its risk profile. Regular assessments can help organisations determine their current maturity level, the level they aspire to reach, and whether the board is getting the amount of information it needs to fulfil its role.
The key to effective assessments? Asking thoughtful questions to establish the current state and then assessing the risk governance process to help management identify, prioritise, and implement improvements. A simple maturity model, with sound Board understanding and effective Board oversight, can help organisations gauge where they are today, as well as set plans for the future
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