TCI: Better risk management, leads to stronger and more profitable businesses, says PwC

#TurksandCaicos, March 16, 2018 – Providenciales – PwC argues that better risk management practices make for better business. Cost savings, more efficient allocation of resources and improved business performance are all likely to be achieved when organisations formally integrate Enterprise Risk Management (ERM) into their strategic and operational activities.

“Companies that equip their line managers (i.e. the first line of defense) and staff with the tools and techniques to identify, assess and respond to risks in a proactive manner, will have a competitive edge,” said Bruce Scott, Risk Assurance Leader for PwC in the Caribbean.  “We know that major risk exposures are rarely confined to discrete areas in an organisation, but rather, can have a domino effect across the organisation.  It is for this reason that PwC has developed a holistic approach to risk management to help protect businesses, facilitating strategic decision making and enhancing efficiency.  Our teams have extensive experience having already worked with public and private sector clients of all sizes to understand and address an extensive range of strategic and operational risks”.

Bruce was speaking on Thursday (March 8) at PwC in the Caribbean’s Risk Management seminar hosted at the Regent Village in Providenciales. The seminar is the latest in a regional series to improve the ability of businesses to manage risks at every stage. The third in the series, and the first in the Turks and Caicos Islands, entitled “Better risk management, better business performance”, not only looked at the practicalities of identifying and managing risk proactively and defensively, but also outlined the importance and roles of Three Lines of Defense in a business.

The three lines of defense are:

• First line of defense (line managers) is responsible for day-to-day execution and management of risk and controls;
• Second line of defense, includes the risk and compliance functions who a play a supporting role to the first line by providing risk management guidance, training and independent reviews of risk exposures faced by the first line; and
• Third line of defense is internal audit, which is responsible for independently testing that the company’s risks are being mitigated. The third line may also include external auditors and regulators.

The PwC team also shared expert insights on the importance of having a sound business continuity planning process that protects against natural disasters as well as unique disasters such as a fire and the importance of a multi-skilled internal audit function that can independently test controls over critical risks faced by an organisation. Other presenters included Nick Haywood, Territory Leader, PwC, Turks and Caicos Islands, Carolyn Bell Wisdom, Risk Assurance Partner, Jamaica, and David Green, Manager, Turks and Caicos Islands.

Nick Haywood, Territory Leader, PwC, Turks and Caicos Islands said, “PwC risk management teams led by Bruce Scott, have performed extensive research on why organisations have failed to properly identify, analyse and address business risks. We’ve worked with a number of businesses regionally to provide cutting edge Enterprise Risk Management Services. Our goal is to provide businesses with the knowledge and resources to manage enterprise-wide risk and for the local business community to be aware that PwC not only provides financial statements audits, but also a range of value-added non-audit services.