PricewaterhouseCoopers (PwC) argues that developing and integrating a robust Enterprise Risk Management (ERM) framework will lead to cost savings, more efficient allocation of resources and reduction in reputation risk exposures.
Bruce Scott, Risk Assurance Leader for PwC in the Caribbean said, “Companies that equip their line managers (ie the first line of defence) and staff with the tools and techniques to identify, assess and respond to risks in a proactive manner, will have a competitive edge. We know that major risk exposures are rarely confined to discrete areas in an organisation, but rather, can have a domino effect across the organisation. It is for this reason that PwC has developed a holistic approach to risk management to help protect businesses, facilitating strategic decision making and enhancing efficiency. Our teams have extensive experience having already worked with public and private sector clients of all sizes to understand and address an extensive range of strategic and operational risks.”
Scott was speaking recently at a training event hosted by PwC and the Grenada branch of the Institute of Chartered Accountants of the Eastern Caribbean (ICAEC) in St George’s, Grenada. The training seminar was intended to equip participants with the knowledge and tools to discharge their risk management responsibilities.
Scott also highlighted the importance and roles of the Three Lines of Defence in a business. The three lines of defence are:
- First line of defence (line managers) is responsible for day-to-day execution and management of risk and controls;
- Second line of defence provides support to the first line of defence and includes functions like risk management, quality and compliance; and
- Third line of defence is internal audit, which is responsible for independently testing that the company’s risks are being mitigated. The third line may also include external auditors and regulators.
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