Timely and accurate management information assists management to:
- Understand the risk profile of the franchise and how this has changed over time.
- Determine whether the organisation's exposure to risk is being managed in accordance with the risk appetite and high level standards set by the Board.
- Assess the 'in control' status of the organisation.
- Take action to mitigate unacceptable exposures to risk.
An effective governance structure will typically:
- Facilitate the accurate flow of information throughout the organisation.
- Ensure the monitoring process identifies and responds to significant issues.
- Enable the escalation of key information to the relevant parties in a timely fashion.
Key information is likely to contain a range of information including:
- Updates / changes to the risk profile.
- Key risk indicators.
- Actual / potential losses and near miss events.
- Control effectiveness.
- Action plan progress.
