Risk management

Risk management is an enterprise-wide activity managed by the Enterprise Risk Committee (ERC) of the GLT and overseen by the Board. There is an overall focus on continuous improvement in quality of service delivery, procedures to monitor quality and the risk management methodology.

Professional risks are managed by the risk management function under the direction of the Global head – strategy, knowledge and risk management, who also serves as a member of the ERC.

The responsibilities of the global risk management function include:

• developing, communicating and maintaining global policies and procedures designed to:
      − maintain independence and objectivity of professionals, including policies relating to providing non-audit services to audited entities
      − establish minimum standards for client acceptance and client continuance
• developing training programmes covering the items referenced above 
• developing and maintaining technology solutions to facilitate the effective and efficient execution of the procedures referenced above
• monitoring the effectiveness of the design and operation of member firms’ systems of quality control over providing high quality services.

The global practice functions have primary responsibility for the development, communication and maintenance of global policies and procedures regarding the delivery of professional services.

In addition, a Risk Management Advisory Committee (RMAC) provides recommendations to the ERC on the identification and management of professional risks. The RMAC is chaired by the Global head – strategy, knowledge and risk management. Membership of the RMAC includes leaders of quality control and independence programmes, risk management leaders from several member firms and the Chief legal counsel.