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Nova Solutions - Risk Management Information

Risk Management

Risk Management systems are now required to be implemented within Financial Services Organisations and are mandated for ASX listed Companies. Increasingly investors and independent directors are demanding that risk programs be put in place to protect their investments and to minimise potential liabilities.

Business Driver

Nova Solutions™ Benefit

What constitutes a Risk Management program is clearly defined by the Australian Risk Management Standards AS/NZ 4360 and the US inspired COSO guidelines. The Australian Standard is a 7 step management methodology that is benchmarked by both ASIC and the ASX.

Nova Solutions™ Fundamentals delivers a Risk Management program that has been developed over a 4 year period and is consistent with AS/NZ 4360. It has been tried and tested with a wide range of businesses, both small and large and is easily adaptable. Nova Solutions™ Assurance makes Risk Management come alive by linking individual risks to controls and treatment plans.

The 2004 KPMG Strategic Risk Management Survey found that 85% of respondents believed that an effective risk management strategy was either critical or very important to the achievement of their business goals and objectives. However:

Nearly 50% had not aligned their risk strategy with their business goals.

46% did not perform any risk/return analysis.

33% were unsure as to whether they had defined their risk appetite.

Only 44% performed a formal evaluation of risk controls.

What this survey shows is that whilst risk management is very important it is difficult to implement in practice. In our experience many companies set out with good intentions however become bogged down in the detail and rarely complete the implementation effectively.

Nova Solutions™ is designed to overcome many of the practical hurdles faced by organisations seeking to implement a risk management program. Critically, the use of risk category trees simplifies the risk identification process and creates the platform for the creation of a common “risk language” within any organisation.

Only 13% of businesses had documented business continuity plans and of these 36% had never been tested. On the other side of the ledger 43% of Australian businesses suffering a disaster of any kind do not reopen. My Business, 20 March 2005.

The importance of implementing an effective risk management program can not be underestimated. Nova Solutions™ provides the infrastructure that will allow you to implement an effective risk management program quickly and efficiently.

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