Insights and Actions – C-suite

Executive management faces a myriad of risk management challenges complicated by the 18-month battle against COVID-19. From business continuity and crisis management to long-term implications on talent management and culture, the impacts of the pandemic will have long, lingering effects on risks and risk management.

In the coming year, executive management should:

BEEF UP ITS KNOWLEDGE OF ECONOMIC AND POLITICAL VOLATILITY. As noted earlier, this risk area could have profound long-term impacts that could reshape how business is done. (See “Risks to pay attention to going forward – Economic and Political Volatility” on page 12).

BUILD AND PLAN TO MATURE PROCESSES AND CONTROLS AROUND ESG REPORTING.

• Leverage internal audit’s understanding of enterprise risk management and proven risk frameworks to help build effective ESG internal controls.

• Don’t wait for external auditors to give guidance or wait for regulators to establish rules.

• Direct internal audit to provide assurance on the effectiveness of existing ESG controls, particularly as they relate to ESG reporting.

PROACTIVELY EDUCATE BOARDS ON TALENT MANAGEMENT AND CULTURE.

• Carefully implement and measure relevant talent management decisions, such as work arrangement preferences, and their effect on employee morale, productivity, and retention efforts.

• Obtain internal audit’s input on return-to-workplace plans and related range of risks, including impact to culture.