Enterprise-Risk-Management-Solutions

At F PHIRI Financial Consultants, we recognise that risk is the driver of organisational activity. Corporate Governance is the organisations strategic response to risk. There is no magic matrix or perfect crystal ball.

When it works well, risk management is a vital force for corporate governance. Unfortunately, it does not always work out as planned. Success in understanding and managing a risk environment requires the following elements:

• A means to thoroughly understand the business process;
• A framework and language for discussing risk among managers and auditors;
• A process to open up the imagination about significant risk potential;
• The Board of Directors / Members should have a structure to enable them to effectively manage the risks facing the organization;
• This structure must enable the Board of Directors / Members to practice Risk Management;
• The Board of Directors / Members must report on the effectiveness of the internal control system (Financial Management). This covers risks such as fraud, dishonesty and adherence to systems/procedures;
• The Board of Directors / Members must identify the principle risks and uncertainties facing a going concern; and
• Audit committees which are independent, must be established as an essential safeguard.

Going concern has an important meaning in accounting terms and includes financial controls, compliance with laws and regulation, exposure to contingent liabilities, guarantees, product liability and environmental damage. It also covers the insurance arrangements.

We will help you to develop a corporate culture in which there will be an awareness of the adverse effects risk exposures may have on the organization. This awareness will result in the introduction of deliberate measures to minimise the potential effect of such exposures on the organisation.