SUMMER/AUTUMN JOURNAL | 2023
PIMFA.CO.UK
One of the fundamental obligations applicable to all regulated firms is the need to implement appropriate processes to manage risks.
HOW TO CREATE RISK OWNERSHIP WITHIN YOUR FIRM
A firm must have robust governance arrangements, which include a clear organisational structure with well defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks it is or might be exposed to, and internal control mechanisms, including sound administrative and accounting procedures and effective control and safeguard arrangements for information processing systems. (Source: FCA Handbook, SYSC 4.1.1 R)
But how do we encourage colleagues to take responsibility and raise issues appropriately? Good risk management brings many benefits to firms. Whether you’re a regulated firm or not, there is value in nurturing a corporate culture where staff throughout the company seek to improve standards. Most people are familiar with the basic risk management process:
IDENTIFY
IMPROVE
REPORT
30
RISK MANAGEMENT PROCESS
ASSESS
MONITOR
31
