Fundamentals of Risk Management

Corporate governance model
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The risk policy of the Welsh Assembly Government (WAG) sets out policy on the identification 
and management of risks that it faces in the delivery of its objectives. Its aims are to ensure 
that risk is taken into account at all stages in the development and delivery of WAG activities, 
including risk analysis and the development of actions to manage risks, and to monitor, 
review and evaluate such activity.
The Accounting Officer and Strategic Delivery & Performance Board of the Welsh 
Assembly Government have adopted the following risk management policy to create the 
environment and structures for the implementation of the WAG plans, to:
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ensure that the objectives of the Welsh Assembly Government are not adversely affected 
by significant risks that have not been anticipated;
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ensure achievement of outputs and outcomes and having reliable contingency 
arrangements to deal with the unexpected that might put service delivery at risk;
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promote a more innovative, less risk-averse culture in which the taking of appropriate 
risks in pursuit of opportunities to benefit the WAG is encouraged;
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provide a sound basis for integrating risk management into decision making;
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form a component of excellent corporate governance and management practices.
Risk Improvement Manager
Corporate Governance and Assurance
Welsh Assembly Government
February 2008
Welsh assembly Government: risk management policy
The box below provides an example of the importance of corporate governance
arrangements within a government agency. The important contribution of risk
management and corporate governance arrangements and management practices is 
highlighted in this example.
evaluation of board performance
The board has overall responsibility for the organization in terms of setting strategy 
and ensuring satisfactory governance. Management of the organization is the 
responsibility of the executive management, and top management, by way of the 
executive directors of the organization, will often be members of the board. When 
executive and non-executive directors are members of the same board, this is
referred to as a unitary board. In many organizations, the board comprises non-
executive directors only, and is referred to as the supervisory board. Where the
supervisory board is in place, the executive directors will meet as the executive

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