Diploma in Strategic Risk Management and Corporate Governance
As part of strategic decision-making, it is important to consider all the risks an organisation faces or is likely to face. Strategic Risk Management is about understanding risks, identifying them, responding, and setting effective control measures as part of a strategic plan.
Corporate governance is the collection of mechanisms, processes and relations used by various parties to control and operate an organisation. Corporate governance is, therefore, the system by which companies are directed and controlled. Corporate governance aims to facilitate effective, entrepreneurial, and prudent management that can deliver the company’s long-term success.
Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and satisfy themselves with an appropriate governance structure. The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship.
Therefore, corporate governance is about what the company’s board does and how it sets its values. It is to be distinguished from the day-to-day operational management of the company by full-time executives.
ABOUT THE COURSE
This diploma helps to provide you with the knowledge and skills to understand the fundamentals of risk management and apply them to your organisation or industry.
WHAT WILL YOU LEARN?
After this course you will be able to:
Understand the nature and how to identify and measure risks, with a view to responding to mitigate them;
Develop an understanding of the importance of being aware of the risk culture and risk appetite of your organisation or industry when assessing and managing risks;
Develop an understanding of how to create effective governance structures in context to the organisation and its environment;
Develop an understanding of risk assurance and its effectiveness for your industry;
Examine and discuss case studies to assess and apply risk management principles at the strategic level, assessing effective governance and internal controls.
COURSE CONTENT
The programme is delivered over an eight week period with a live webinar session each week in which the following indicative content will be explored.
Introduction to Risk Management
To explain and consider risk management in context, understanding the nature of risk and risk management.
Approaches to Risk Management
To consider risk management standards, concepts, and frameworks to establish the context.
Risk Assessment
Approaches to risk assessment and risk classification systems, risk analysis and evaluation.
Risk response
Methods to responding to risks, risk control techniques and the importance of insurance and risk transfer.
Risk Strategy
Assessment and creation of a risk management strategy, considering reputation and key responsibilities.
Risk Culture
The awareness of your culture and the determination of your risk appetite.
Risk Governance
Understanding of corporate governance models and structures for effective management of risks
Risk Assurance
Understanding the nature and purpose of internal controls and the role of the internal auditor.
WHAT IS STRATEGIC RISK MANAGEMENT@
Strategic risk management can include a wide range of risks that face any organisation. Some risks may reflect exposures that, although harmful, will not threaten the overall health of an organisation or its ability to meet its business objectives ultimately. For example, a temporary data centre outage can result in a short-term problem or customer dissatisfaction, but the organisation can quickly be back on track once recovered.
Other more significant risk events can be catastrophic, resulting in losses that can impair an organisation’s ability to meet its objectives and threaten the organisation’s survival. The recent credit crisis is an example of this type of risk. These more significant risk exposures have given rise to a focus on “strategic risks” and “strategic risk management.” “Strategic risks” are those risks that are most consequential to the organisation’s ability to execute its strategies and achieve its business objectives. These are the risk exposures that can ultimately affect shareholder value or the viability of the organisation.
“Strategic risk management” then can be defined as “the process of identifying, assessing and managing the risk in the organisation’s business strategy—including taking swift action when risk is actually realised.” Strategic risk management is focused on those most substantial risks to shareholder value. This area merits the time and attention of executive management and the board of directors.