It explains what risk management is and the principles that underpin it. The factsheet reviews the risk management cycle, including measurement and documentation, together with key risk concepts. It also provides an overview of the most influential risk management models available today – although there are no legal or regulatory requirements for organisations to adopt these models, the factsheet summarises the benefits of doing so.
Most importantly, the factsheet encourages professional accountants to ‘think risk’. It shows through examples how effective risk management not only helps prevent loss and protect reputation but also enables better decision-making, thereby increasing the chances of meeting the business’s objectives.