Risk and compliance video series: 5 key benefits of strategic risk assessments
Global | Video | November 2018 | 03:33
Video Details
| John Davison | Hello and welcome to the second in our compliance and risk series of videos and today I'm here with Christian Blackwell, a director in regulatory compliance consulting, who's going to talk about the five key benefits of strategic risk assessments which is a key area of focus for regulators globally. Christian, welcome. I wonder whether you can give me what you think the first key areas of strategic benefits are in doing this for businesses. |
| Christian Blackwell | Thanks John. Really strategic risk assessments is the key risk prevention tool. It allows you to consider risk at the outset rather than allowing it to manifest later in the process and in other functions and product lines as time goes on. And as part of that it's really important because you've got the key, set in strategy, you've got the key strategic personnel, the key accountable personnel, together and to get them to do that at the outset is really important and it shows a positive aspect of dealing with risk at a very senior level. |
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John Davison |
Okay. So two key benefits, one being kind of commercial risk management and the second accountability of individuals and demonstrating that. |
| Christian Blackwell | Exactly |
| John Davison | In our previous videos, we touched on commercial performance and risk data and things like that, and I wonder whether there is a relationship here between those two things and the outputs of strategic risk work. |
| Christian Blackwell | Well, exactly, I think it allows you to get better decisions and better outcomes by considering risk and commercial performance at the same time rather than looking at one and then outsourcing that to a risk function or another part of the organisation and I think that's really beneficial to the organisation's management of risk. |
| John Davison | And which endorses at source, I guess, the data point about risk and commercial data begin aligned and the importance of that. |
| Christian Blackwell | Exactly |
| John Davison | And I guess, so that's three, I think in terms of moving on to the fourth point for me. Then we were talking the other day about the importance of culture, and the importance of management culture, and I wonder whether you can, you know if you can talk to me about your prospectives of a segway between strategic risk and driving culture through a business. |
| Christian Blackwell | Well I think having risk on the strategic agenda it really allows you to demonstrate to the organisation internally, but also to regulators, that you're taking risk really seriously and having a strategic agenda really, really enables you to do that rather than just having it as an annex, it's actually embedded and is a key part of what the organisation does because risk happens as soon as you're making the strategic decisions. |
| John Davison | Of course and that's a great point and I guess the last one I'd like to talk to you about actually is in relation to opportunity. So it's very easy for us to talk to about this as purely risk prevention but do you see any commercial opportunities for organisations that they could glean from doing a process like this? |
| Christian Blackwell | Opportunities arise and we look at strategic ways of delivering opportunities, our opportunities, and improving our business performance. Looking at risk at that level allows you to actually have better products and therefore potentially more commercial success on the back of it. I think they go hand in hand, and it's important to consider them hand in hand. |
| John Davison | Excellent and drive, I guess, better customer outcomes as well. |
| Christian Blackwell | Exactly |
| Christian Blackwell | Christian, thanks very much that's been very useful. |