The aim of risk management is to:

reduce the probability of occurrence and/or the impact of risk events that can have a negative impact on the objectives of an organisation.

Risk management is not just the implementation of accounting controls to avoid the occurrence of risk, nor is it restricted to the identification of insurable risks or the creation of a risk averse management. Rather, it is establishment of risk awareness in the organisation to create an acceptable balance between the cost of risks occurring and the cost of managing the risks, as shown by the following framework.

Improved treatment of risks

Treatment of risks will be improved through:

• the transfer of transferable risks.
  
• the elimination of unnecessary risks.
  
• the management of accepted risks.
  
• an appropriate balance of risk and control.

Acceptance of risk management concepts

The implementation process will provide key personnel in the organisation with an understanding and awareness of risk management, thereby increasing their effectiveness in the management of the business.

Balance between risk and control

The implementation of risk management will allow the organisation to achieve an appropriate balance between risk and control, i.e. to become more risk efficient.

Enhancement of internal audit functions

A comprehensive inventory and profile of risks will be created, allowing the audit function to focus on high risk areas. The audit function will be able to assess the audit focus and frequencies, as well as determine the requirement for specialist resources and changes in audit plans based on changes in risk profiles. Risk management allows the internal audit to add value to the business by providing a means of interaction with business managers.

Practice description

KPMG offers risk management services that address the full spectrum of the risks to which your organisation is likely to be exposed. These services include:

Strategic risk management
Strategic risk management is the identification, assessment and implementation of responses to risks associated with the achievement of an organisation's strategic objectives.

Project risk management
Most organisations are at any time implementing a number of projects that can have a significant impact on the business' risk profile. KPMG is able to assist in managing the projects' risk to ensure the minimisation of the impact.

Control risk self-assessment
All organisations have a purpose and the achievement of this purpose depends on how well resources are managed, opportunities capitalised and challenges met. KPMG's Control Risk Self Assessment (CRSA) methodology provides a means to assess how well risks are managed in the achievement of an organisation's objectives.

Information risk management
KPMG's Information Risk Management (IRM) team provides solutions that promote the efficient and secure use of your information resources.

Environmental risk management services

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Careers

At KPMG, we are looking continuously to expand our risk management capability. We are recruiting specialists in all areas of risk management consulting and if you feel that you have qualities that would interest us, we would like to hear from you.

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