Risk Management Setup & Operation
Overview
Strengthening risk management is essential for sustainable growth and adaptability. We help organizations identify and manage risks by clarifying roles and responsibilities, establishing optimal frameworks, and enhancing preparedness. First Compass provides expert support based on top-level industry knowledge and networks.
Support Services
１．Risk Management Framework
Effective risk management requires clear identification of risks across the organization and clear allocation of roles and responsibilities. Leveraging the “three lines of defense” model and expert knowledge, we design frameworks tailored to each organization’s needs. This enables every department to play its role and ensures the entire organization works together to manage risks effectively.
- Risk Identification & Assessment: We analyze and assess a company’s risks to identify which should be prioritized.
- Roles & Responsibilities: We clarify the roles required for risk management and design how they are distributed across departments. Based on the “three lines of defense” model, we ensure first-line risk management at the operational level, second-line monitoring and control by management, and independent oversight through internal audit.
- Design Tailored to the Organization: We build a flexible and effective risk management framework, tailored to the organization’s size, industry, and workforce characteristics.
２．Risk Management Operation
After establishing a risk management framework, effective operation is key to successful risk response. First Compass supports the framework’s implementation, ensuring the organization can respond quickly and appropriately. Roles are continuously reviewed and adjusted to maintain effectiveness.
- Risk Monitoring & Review: Through continuous risk monitoring, we regularly assess emerging risks and the organization’s responses to existing risks, enabling swift adaptation to changing circumstances.
- Improving Internal Controls: We provide recommendations to improve internal control processes based on issues or areas for enhancement identified during operations, ensuring the risk management system remains optimal.
- Company-wide risk awareness: To ensure an effective risk management system, raising risk awareness across the entire organization is essential. Regular training and workshops help employees understand their roles and responsibilities and act appropriately in response to risks.
In Conclusion
The establishment and operation of a risk management framework form the foundation for a company’s sustainable growth and ability to adapt to changing environments. First Compass designs flexible risk management systems tailored to each organization’s size and characteristics, and supports their operation to maximize effectiveness. Please feel free to contact us for consultation.
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