Peer approach: incorporating emerging trends into risk reporting

How can risk leaders ensure that emerging risk reporting is connected to business objectives? Read this peer-contributed approach to understand how a CRO at an ASX-listed organisation has embedded emerging risks into their broader risk reporting structure.

Case study: Embedding emerging risk into an organisation's risk management process

See how a risk leader in our network used their membership to create risk intelligence that provides an emerging risk lens to business decisions.

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Where do emerging risks fit in?

The risk team developed a taxonomy with three distinct tiers, to organise the business' current and emerging risks into a defined structure:

Emerging risks or "trends" fall under one or more of the general risk factors.

The risk radar

The risk radar is the main visual included in this company's reporting.

The risk team use the radar to illustrate the development of the business' risks.

Plotting key risks closest to the centre, and general risk factors in the outermost circle, a trend is included for each risk to demonstrate whether they are "increasing", "decreasing" or "stable".

As mentioned above, emerging risks are associated with general risk factors, labelled "A", "B", "C" etc. in the example radar.

Reporting cadence and structure

At this company, emerging risk reporting to the executive and the board largely aligns with the cadence of overall risk reporting:

Using visuals as part of emerging risk reporting

The radar (above) anchors the annual risk paper, and is refreshed in each of the regular CRO reports, particularly to demonstrate how each of the business' top risks are trending.

How do other risk leaders' approaches compare?

During the collaborative member meeting where this case study was presented, other risk leaders also shared their approaches. Here are some common themes from that discussion:

Of course, as a member, you could participate in collaborative meetings relating to your priorities. You would be able to ask questions, dig deeper and have other practitioners validate your approach. 

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What's next?

Through the provision of relevant risk information to strategy teams, the risk function can help to guide strategy by identifying threats, opportunities and scenarios that may cause it to deviate in the future.

We are supporting practitioners in their efforts to further integrate the risk function into strategy conversations. To collaborate with peers on this challenge — to help develop a new approach or validate an existing one — please book an exploratory call with our insights team.