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Chapter 10: Developing Accountability in Risk Management: The British Columbia Lottery Corporation Case Study
Chapter 11: Starting from Scratch: The Evolution of ERM at the Workers’ Compensation Fund
1.) Locate and review an article relevant to the topic of the class. The review is between 400-to-550 words and should summarize the article. Please include how it applies to our topic, and why you found it interesting.
2.) Reply for below post (100words)
ACCOUNTABILITY IN RISK MANAGEMENT
Accountability is the act of one being responsible enough for his or her actions. Risk management is forecasting of financial risks that may occur in an entity and come up with procedures that may reduce their impact (Carroll, 2019). Accountability in risk management is the key to ensure that controls and policies work. For accountability to work in any institution, three different forms of ownership are involved. The three different owners in regards to accountability involve the risk owner, control owner, and the treatment owner.
The risk owners are potentially the leaders of the institution their primary role being oversight of the management. They take part in the day-to-day activities of the firm. Risk owners ensure that the control environment is productive. The risk owners are accountable for all risks that are associated with firm management. This ensures that they are liable for any happenings that occur at the various institutions that they represent. The risk owners should ensure that all processes check to ensure that no cases arise that might risk the normal operations of the entity.
The control owners are responsible for ensuring that they come up with a program for the entity. The program provides that the entity can measure its effectiveness and performance indicators on a particular control. Such case scenarios are where the developers develop software that they believe is free from hacking. In case such an event arises, then the liability solely lies on the control owners. The control owners come up with controls such as passwords and user verifications to ensure that the systems are not hacked or data used by hackers. The control owner’s effectiveness in any institution is based on their performance and efficiency in the ever-rising era of technology.
Lastly, we have the treatment owner. Treatment owners are responsible for ensuring the implementation of treatments designed as part of the management of the risk. The treatment owners ensure that all activities are conducted on time and that they meet the levels that they have been designed to fit (Fraser & Simkins, 2016). The treatment owners are accountable for the risks that are associated with the failure to conduct operations on time.
Risks are hard to avoid, especially in organizations where the company has no control over its demand and customer base. Estimations may not be right leading to actualizations of risk.it is thus ideal for different personnel to ensure that they keep their controls effective and be accountable for any risk that may occur and come up with solutions in a bid to improve the functionalities of their entities.
I find this article relevant to our topic of discussion this week. Accountability is key in risk management as we have seen in chapter 10. Without accountability, follows the danger of risks continues to be significant. It is interesting though that people are forced to ensure that the controls work or find themselves in a tight spot. For efficient running of enterprises, entities have to ensure that all risks are mitigated and that all personnel work towards the actualization of these goals.
(Link to the article : https://paladinrisk.com.au/accountability-risk-man…)
Carroll, S. (2019). Risk management: APRA information paper: Self-assessments of governance, accountability, and culture. Governance Directions, 71(6), 314.
Fraser, J. R., & Simkins, B. J. (2016). The challenges of and solutions for implementing enterprise risk management. Business Horizons, 59(6), 689-698.