Risk Management disciplines, especially when applied as an integrated part of performance management, enable the board to demonstrate that their business is being well managed in accordance with the best advice on corporate governance.
- Assurance that funds are available to cover all unexpected losses
- Improve profitability by identifying aggregate loss by:
- Business, department and product line
Ensure properly delegated responsibilities are given to implement remedial actions and corrective quality initiatives.
Using MIMS RM
- An increased chance of achieving company objectives,
- An increase in the value of the company
- The ability to inform institutional shareholders about the risk management programmes in place has been shown to increase the value they attribute to that company (global study by Ernst & Young April 2007)
- An improved ability to successfully manage major projects
- A reduction in the funds or premiums provided to cover unforeseen events.
- The ability to demonstrate that business is being proactively and well governed.