Risk management
RISK ANALYSIS AND MANAGEMENT
RAI Amsterdam further enhanced its risk management activities during 2020, with policy steps taken in relation to the structural and systematic control of risks. Risk management is embedded in the strategic and operational processes. The integrated risk management system covers all levels of the operational management and all parts of the company. Risk and control measures are periodically analysed, recorded in a register and monitored. A risk & compliance board oversees progress every quarter, with the Executive Board, senior management and risk & compliance officer taking part.
The Board monitors the effective functioning of the system and, together with the company, aims for continuous improvement and strengthening. COVID-19 obviously led to a great deal of attention being paid to acute crisis management alongside the structural developments in integrated risk management. While the pandemic was an unforeseen crisis for the RAI in 2020, the company could leverage on previously developed risk control measures which certainly made the situation and impact more manageable.
Focus on realising goals reducing chances and/or impact
Risk management and internal control are dynamic processes. RAI Amsterdam aims to analyse and manage the risks that may arise in realising strategic, tactical and operational goals with a reasonable level of certainty. Management measures taken in this framework are focused on reducing the chance that the risk will occur and/or reducing the impact that the risk might have when it occurs.
operational processes properly embedded and integrated
uncertainties
Risk management needs to be solidly embedded in the operational processes and fully applied in order to properly function. The risk management system set up by the RAI is based on the principles and starting point of standards such as ISO 31000 and COSO.
Although we try to limit them as much as possible, it cannot be excluded that certain risks not currently identified or considered significant may later have a negative effect on the capacity of the RAI to realise its goals. The COVID-19 pandemic has once again reinforced this point.
Risk attitude and tolerance taking risks is part of business
Entrepreneurship is one of the core values of the RAI. This involves the tolerance to take risks in a controlled way. The goal of risk management is therefore not to exclude risks, but to gain insights that enable us to properly address opportunities and threats.
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