Diary of an IRM student

The Christmas break has left me a little behind with my studies. This week I’ve been working hard to catch up.

I’ve just about finished the first module of the IRM’s International Certificate in Risk Management.

Over the last few days my reading has covered the IRM’s standard on risk management, which gives a good definition of risk and how risk management should be applied and carried out within an organisation.

I found reading the standard surprisingly easy going, it begins with a diagram which describes the risk management process and then breaks it down with a concise explanation of each of the elements. Overall it gives the reader a good understanding of what risk management is all about and who is responsible for the various different parts.

Also included in the reading list for the first module is the Turnbull guidance for directors on internal control and risk management. This was first published in 1999, but the Guidance I read was updated in 2006.

Turnbull sets out senior management responsibilities as so: “The board should maintain a sound system of internal control to safeguard shareholder’s investment and the company’s assets.”

Directors should review the application of internal controls and report to the public on the effectiveness of these systems, says Turnbull. According to the Guidance the board’s annual statement on internal controls should: “assist shareholder’s understanding of the main features of the company’s risk management process.”

Over the weekend I plan to cover the final piece of reading: COSO’s ERM Integrated Framework. And after that it’s on to the next module, which is Risk Strategy.