The risk-based approach is not a new concept, and it allows
businesses to develop a proportionate risk framework based on the
size, nature and complexity of business activities. Businesses can
build a scalable business model, while maintaining suitable
oversight and control of their key risks in a commercial
manner.
Autonomy in determining what is appropriate brings the benefit
of avoiding unnecessarily over-engineered processes, and allows
businesses to measure risks in a fashion which is specific their
business.
Each business is exposed to many different risks, and
responsibility for the risk framework environment starts with the
Board, who are responsible for the effective and ongoing
organisation and control of the business.
