The role of risk management and assurance services in the c-suite

Chairing the panel at the 45th African Governance Conference, I noticed that there is a perception – shared by many leaders in the world – that risk management and auditors are often focused on value preservation and not value creation. Where management is focusing on business growth, and bottom line, auditors are often seen as the guys that are warning management not to take risks, or not to grow the business. Wayne Poggenpoel posted recently that the profession is getting confused between the roles of assurance provider and trusted advisor. In the panel Christelle Faul Marais and Jean-Pierre Rossouw argued that auditors can indeed be value creators, and if risk managers and auditors are zoning in on Mission Critical Objectives, they might be able to reduce the noise and gain trust over time. This sounds like Tim Leech speech, and the audience of 200+ leaders, directors and business managers seem to agree. I also took note of Dr Peter Goss PhD comments that there is indeed an urgent need for integrated assurance – the bigger picture on a portfolio view of risks. Peter, when asked to identify one skill that auditors and risk managers should have, he replied business acumen. Some key points were made about shortening the timing gap between information flowing from risk and assurance to the point of decision-making by business leaders – agile, almost real-time auditing and risk management. Lots to contemplate…..