Governance &
Risk Management
Charter
Purpose:
To ensure transformation initiatives adhere to governance standards and manage associated risks.
Scope:
Governance frameworks, risk identification and assessment, compliance monitoring.
Responsibilities:
Establish governance policies, identify and mitigate risks, ensure compliance.
Key Activities:
Developing governance frameworks, conducting risk assessments, monitoring compliance.
Expected Outcomes:
Strong governance and compliance, effective risk management.
Governance Activities:
Quarterly governance and risk management meetings to review policies, assess risks, and ensure compliance.
Example Objectives and Key Results (OKRs):
1. Establish Robust Governance Frameworks
• Develop and implement comprehensive governance structures that guide and support transformation initiatives, ensuring alignment with organizational goals and compliance standards.
2. Enhance Risk Identification and Assessment Processes
• Improve processes for identifying, assessing, and prioritizing risks associated with transformation initiatives, ensuring a proactive approach to risk management.
3. Improve Risk Mitigation and Management Strategies
• Create effective risk mitigation plans and strategies to manage identified risks, minimizing their impact on transformation objectives.
4. Ensure Compliance with Internal Policies and External Regulations
• All transformation initiatives should comply with relevant internal policies and external regulatory requirements, reducing legal and financial risks.
5. Strengthen Reporting and Communication of Governance and Risk Management
• Enhance the transparency and communication of governance and risk management activities to stakeholders, ensuring informed decision-making.
Example Key Performance Indicators (KPIs):
1. Establish Robust Governance Frameworks
• 100% of transformation initiatives have a governance framework by X date
• 90% stakeholder satisfaction rate regarding the clarity and effectiveness of the governance structures
2. Enhance Risk Identification and Assessment Processes
• 30% Increase in the early identification rate of risks through improved risk assessment processes
• 100% of new transformation initiatives have risk assessments conducted before initiation
3. Improve Risk Mitigation and Management Strategies
• 100% of identified high-priority risks have SMART mitigation plans within one month of identification
• 20% Impact reduction of critical risks on transformation project timelines
4. Ensure Compliance with Internal Policies and External Regulations
• Zero non-compliance issues in internal audits and external regulatory reviews over the next fiscal year
• 100% Conduct compliance training participation of Transformation Office staff and project managers involved in transformation initiatives
5. Strengthen Reporting and Communication of Governance and Risk Management
• 100% On-time report submission to a monthly governance and risk management reporting process
• 25% Increase in positive feedback on communications effectiveness, demonstrating stakeholder understanding of governance and risk management activities
People
Governance and Risk Management Lead: This individual oversees the development and implementation of governance frameworks and risk management strategies, ensuring alignment with organizational objectives.
Compliance Officers: Professionals who ensure that transformation initiatives comply with internal policies and external regulatory requirements.
Risk Analysts/Managers: Specialists responsible for identifying, assessing, and managing risks throughout the lifecycle of transformation initiatives.
Project Managers: They play a crucial role in implementing governance and risk management practices within their respective projects, ensuring adherence to established guidelines and protocols.
Legal Advisors: Provide legal guidance on regulatory requirements, contracts, and agreements to ensure that transformation initiatives are compliant and legally sound.
Internal Auditors: Conduct audits of transformation initiatives to ensure compliance with governance frameworks and risk management practices.
Processes
Governance Framework Development and Implementation: Establishing clear guidelines, structures, and responsibilities to guide the governance of transformation initiatives.
Risk Identification and Assessment: Systematically identifying and evaluating risks associated with transformation projects to determine their impact and likelihood.
Risk Mitigation Planning: Developing strategies and actions to manage and mitigate identified risks to acceptable levels.
Compliance Monitoring and Reporting: Regularly monitoring and reporting on transformation initiatives for compliance with internal policies and external regulations.
Continuous Improvement: Implementing feedback loops to continually refine and enhance governance and risk management practices based on lessons learned and emerging best practices.
Tools
Risk Management Software: Tools like LogicManager, RSA Archer, RAID Logs, or RiskConnect to facilitate risk identification, assessment, mitigation, and reporting.
Project Management Platforms: Software such as Smartsheet, Asana, Trello, or Microsoft Project helps track the adherence of projects to governance standards and risk management protocols.
Compliance Management Systems: Solutions like ComplySci, Diligent, or NAVEX Global that assist in monitoring, managing, and reporting on compliance with regulatory and policy requirements.
Collaboration Tools: Platforms such as Microsoft Teams, Slack, or Zoom that facilitate communication and collaboration among governance and risk management team members and stakeholders.
Document Management Systems: Tools like SharePoint, Google Drive, or Documentum for organizing, storing, and managing access to governance and risk management documentation and records.