Canadian organizations can take major steps toward mastering the
challenges of modern business risks by incorporating those perils
into strategic planning and nurturing strong risk cultures. This is
according to a new white paper from Crowe Horwath Global Risk
Consulting and The Institute of Internal Auditors (IIA) Canada
The State of Risk Management in Canada 2015."
The whitepaper is based on findings from the inaugural Mastering
Risk in Canada survey, which questioned risk professionals working
in internal audit, risk management and internal control functions,
as well as operational managers with responsibility for applying
and maintaining internal controls. The survey elicited more than
110 responses from a broad cross-section of Canadian businesses and
public sector organizations. It was undertaken as part of an
ongoing initiative to recognize organizations that have
demonstrated sustained efforts toward mastering risk.
The report was released on October 15, 2015 as part of the
Mastering Risk Awards gala, which culminated in the presentation of
Canada's first Awards for Excellence in Risk Management and
Internal Audit. Awards were presented to the following
Achievement in Public Sector Risk Management and Internal Audit
Achievement in Private Sector Risk Management –
Achievement in Private Sector Internal Audit – Fortis
Achievement in Private Sector Risk Management and Internal
Audit – Wajax Corporation
Attendees and winners at the IIA Canada and Crowe Horwath
Mastering Risk Awards in October 2015.
Four major themes emerged from the whitepaper and suggested
areas in which organizations can find opportunities for
Clarify and coordinate roles and responsibilities of
the three lines of defence. Bring focus to the integration
and coordination points that are important to each risk management
function and see that each function's needs are addressed when
designing commonality and consistency including enabling
governance, risk, and compliance systems.
Take a more strategic approach to risk
management. Position the risk management functions to
perform the strategic threat analysis as part of the strategic
planning (strengths, weaknesses, opportunities, and threats [SWOT]
analysis, for example) or stress-testing approaches.
Demonstrate risk management's results and positive
Return On Investment (ROI). Have an honest and open
conversation with the "champion" in your organization for
improving the perception of ROI of risk management functions.
Work with the board or risk/audit committees and senior
management as risk culture champions. Undertake and
present the results of culture surveys to the Board of Directors,
or put risk tolerance and appetite on the agenda. Alternatively,
have the Board of Directors be responsible for risk oversight with
delegation, when appropriate, of certain specific risks to board
subcommittees (e.g. the health, safety and environment
subcommittee, or the human resources risks subcommittee).
Pursuant to several recent legislative amendments and enactments, Ontario corporations holding a legal or beneficial interest in real property in Ontario are now subject to more onerous record-keeping requirements.
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