8. Risk management roles and responsibilities - Alex Sidorenko

Summary

In this Risk Academy video, Alex discusses the criticality of documenting risk management roles and responsibilities within an organization. He presents two options: Option A, where a separate risk management document is created, and Option B, which integrates risk elements into existing job descriptions and policies. Alex advocates for Option B, emphasizing the importance of integrating risk management into the company's culture and documents to ensure it is effectively addressed by all stakeholders.

Takeaways

• 📜 The importance of documenting risk management roles and responsibilities is emphasized as a key aspect of developing a risk management culture within an organization.
• 🔍 Two options for documenting risk management roles and responsibilities are presented: Option A involves creating a dedicated document, while Option B integrates risk elements into existing job descriptions and policies.
• 📑 Option A suggests a centralized risk management document that includes roles and responsibilities for various stakeholders such as board members, audit committees, CEOs, and other management levels.
• 📄 Option B advocates for the integration of risk management considerations into existing organizational documents like job descriptions, committee charters, policies, and procedures.
• 👍 The speaker expresses a preference for Option B, considering it a more effective approach to integrating risk management into the organizational culture.
• 🚫 The speaker criticizes Option A for potentially leading to documents that are not read by anyone other than the risk manager, thus failing to embed risk management into the organization's culture.
• 💡 It is suggested to go beyond documentation and integrate risk management into the organization's KPI system, remuneration system, and motivational structure to strengthen the risk management culture.
• 🔗 The speaker references a separate video on risk management framework documents, indicating a broader series of resources available on the topic.
• 💬 The speaker invites viewers to leave comments and subscribe to the Risk Academy YouTube channel for more content on risk management.
• 👋 The speaker concludes with a sign-off, encouraging engagement and further exploration of the topic.

Q & A

What is the main topic of the video by Alex from Risk Academy?

The main topic of the video is documenting risk management roles and responsibilities within an organization.

Why is it important to document risk management roles and responsibilities?

It is important to document risk management roles and responsibilities to ensure they are clear and communicated to all relevant stakeholders, which helps in developing a strong risk management culture within the organization.

What are the two options for documenting roles and responsibilities related to risk management mentioned in the video?

The two options mentioned are: Option A, where a risk manager creates a dedicated document listing all roles and responsibilities, and Option B, where risk elements are added to existing job descriptions, committee charters, policies, and procedures.

What is Option A in the context of documenting risk management roles and responsibilities?

Option A involves creating a single document, such as a risk management framework or policy document, which lists all the roles and responsibilities related to risk management.

What is Option B in the context of documenting risk management roles and responsibilities?

Option B involves integrating risk management elements into existing documents like job descriptions, committee charters, policies, and procedures, ensuring that risk considerations are part of the organization's standard documentation.

Which option does Alex from Risk Academy prefer, and why?

Alex prefers Option B because it integrates risk management into the existing fabric of the organization's documentation, making it more likely to be read and followed by all relevant stakeholders, rather than being confined to a standalone document that may not be read.

What does Alex suggest as a way to further integrate risk management into the organizational culture?

Alex suggests adding roles and responsibilities related to risk into the individual KPI system, remuneration system, and motivational structure of the organization.

What is the potential issue with Option A according to the video?

The potential issue with Option A is that it may result in a document that is not read by anyone other than the risk manager, leading to a lack of integration of risk management into the overall organizational culture.

What is the significance of integrating risk management into job descriptions and other documents as suggested in Option B?

Integrating risk management into job descriptions and other documents ensures that risk considerations are an inherent part of each role, promoting a culture where risk management is everyone's responsibility, not just the risk manager's.

What additional steps does Alex recommend to strengthen and build a risk management culture?

Alex recommends taking about a hundred different small steps, which could include integrating risk management into various organizational systems and processes, to strengthen and build a risk management culture.

How can viewers engage with Risk Academy for more content like this video?

Viewers can engage with Risk Academy by leaving comments under the video, subscribing to the Risk Academy YouTube channel, and watching more videos on the topic.