Chief Internal Auditor of the Uganda Investment Authority Mr. John Kyamakya Bwambale has advised investors to include risk management in their corporate strategies.
“This because risk management support a business as a tool for decision-making but the ultimate aim of risk management is to inform and provides measures for effective decision-making.
He said this at a training session of the UIA Business Development staff of key issues in risk management that they have to pass on to the potential and existing investors for implementation to avoid negative effects of disasters and pandemics to their projects.
“He however advised that risk management can be properly addressed with the introduction of a risk management framework that must introduce a systematic and planned approach to risks, determine accountability for risk management and clarify governance in matters of risk management.
He pointed out that effective risk management involves the identification, assessment, and prioritization of risks or uncertainties followed up by minimizing, monitoring and controlling the impact of risk realities or enhancing the opportunity potential by applying coordinated and economical resources.
Risk management is essential in any business/organization and there are three types of risk control that include preventative, detective, and corrective..
He advised that investors should develop risk control strategies that would include application of safeguards to avoid risks, transfer the risks for example to insurance protection and those that reduce effects such as mitigation measures.
“Risk management is the role of the Board and or the investor, the Board delegates this role to Management-Set the Tone at the Top, management appoints a risk officer or department, all departments, project and Unit Heads are risk owners, therefore all staff have a role in risk management,” he explained.
He said that investors need to apply techniques and tools that include brainstorming during which you assess the risks that could impact your business.
Other techniques include assessing strengths, weaknesses, opportunities and threats, maintaining and updating a risk register, risk data quality assessment, tracking risks and holding meetings.