Risk Management: Core to Performance
Journal Title:Organization Leadership and Development Quarterly (OLDQ)
Risk management is a core function of contemporary institutions because organizations as complex adaptive systems are not easily controllable. Businesses need to adopt sound corporate governance as a roadmap to ensuring that risks are understood, managed, and properly communicated. The proper identification and comprehensive management of risk should be at the centre of any risk governance standards. Based on the complexity and volatility of the business operating environment, the governance standards in modern organizations should place sufficient emphasis on ex ante identification of risk as a prerequisite for building high performance organizations. Organizations should ensure adequate strategic, compliance, innovation and operational risk management in addition to giving due consideration to both financial and non-financial risks that are prevalent in the business environment.