Effective risk reporting is fundamental to a strong compliance program - and frankly, is crucial to a risk practitioner's job security.
A lack of quality risk reporting in the organization leaves the board ill-equipped in determining the efficacy of the risk management systems in place. Risk reporting also enables the board to offer strategic guidance to the organization.
Furthermore, a management team that has valuable risk information is better able to drive operational improvements to better support the business’s objectives.
The report should address how your risk and compliance program is addressing the risk in question (ie. the company's existing policies and controls), as well as a timeline for action or a request for additional resources.
Every risk in a risk report should include a description of its potential impact. The impact can be defined along several lines;
Not every risk needs a full overview of every point above, but you should consider these variables and which are most relevant to the risk you are highlighting.
Keep your report concise, to the point and easy to digest. Start with an executive summary, followed by an overview of each risk (with your supporting data) and close with a positive 'forward-looking' statement.
Knowing that your audience will be management and operations folks, you might tie each risk to a stated business objective for greater context; the connection telling the reader why it matters. Anything beyond 10 pages is too lengthy.
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