The Key Function of Internal Enterprise Risk Consulting

Abstract

The article presents the issue of improvement of the performance of integrated risk management systems in the practice of Russian non-financial enterprises. The analysis shows that such systems are not effective enough, therefore in business and scientifi c circle s mor e an d mor e attentio n is paid to various methodological and practical problems of enterprise risk management. In particularly the attention is attracted to the risks of non-financial enterprises where integrated risk management has not yet progressed as much as, for example, in financial companies. Most of such enterprises do not have their effective system solutions for integrated risk management. Consequently, development of new organizational and methodological approaches to integrated risk management implementation in Russian enterprises has become an issue of current interest. Based on the best practices of some companies, one of the good solutions for this problem may be found in organizing internal risk consulting services at Russian enterprises. The main presumption for this is the fact that the key problems of enterprise-wide risk management are underlain with inappropriate information, analysis, consulting and methodical support of risk management practice, and besides, a lack of coordination within a corporate risk management system. The article puts forward an idea that the key function of an internal risk consulting service should be an enterprise-wide risk monitoring, since both this service and decision-making managers at any point of time must be provided with the entire, relevant and actually assessed enterprise risk profile, in order to elaborate appropriate risk solutions. Such a holistic profil e ca n b e ensure d only through implementation of an internal enterprise-wide risk monitoring process. Thus, the authors of the article outline their approach to development of the concept model of an internal enterprise risk consulting service, namely they define the structure, functions and tasks of an enterprise-wide risk monitoring process designed to play the key role in this service. The essential aspects of risk factors data collection are described in detail. Also some key indicators of enterprise risk management performance are suggested.