Fundamentals of Risk Management

Risk strategy
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implementation of a risk management initiative will require close co-operation and 
understanding between risk management and internal audit. The RASP should set 
out the details of how this close co-operation will be achieved in practice.
The risk architecture defines how information on risk is communicated throughout 
the organization. The risk strategy defines the overall objectives that the organization 
is trying to achieve with respect to risk management. The risk protocols are the 
systems, standards and procedures that are put in place in order to fulfil the defined 
risk strategy. The risk architecture forms part of the risk management framework. 
The risk management framework, in turn, is part of the overall risk governance
arrangements within the organization.
Introduction
Risk management is an integral part of good management practice and a key part of corporate 
governance. This strategy statement outlines the arrangements put in place to ensure the 
council identifies and deals with the key risks it faces.
The council has adopted proactive risk management arrangements to enable decisions to be 
based on comprehensively assessed risks, ensuring the right actions are taken at the right time.
How successful the council is in dealing with the risks it faces can have a major impact on 
the achievement of its key strategies, priorities and service delivery to the community. The risk 
management strategy helps to support the aim of the council to be a world-class organization.
Objectives
The objectives of this strategy are to:
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fully integrate risk management into the culture of the council and its strategic and 
service planning processes;
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ensure that the risk management framework is understood and implemented by staff
with an operational responsibility for risk;
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communicate the risk management approach of the council to stakeholders;
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ensure the benefits of risk management are realized through maximizing opportunities and 
minimizing threats;
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ensure consistency throughout the council in the management of risk.
risk management
The focus of good risk management is the identification and treatment of risks. It increases 
the probability of success and reduces the likelihood of failure and the uncertainty of 
achieving objectives. Risk management should be a continuous and evolving process that 
runs throughout the strategies and service delivery of the council.
Learning lessons from past activities helps inform current and future decisions by reducing 
threats and optimizing the uptake of opportunities. Celebrating and communicating 
successful risk management in turn encourages a more daring but calculated approach.
risk management policy for a council

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