What is non-financial risk?
You might have heard a lot of financial regulator talk about non-financial risk lately. Not sure what that means?
Thanks to APRA definitions also adopted by ASIC, please find below what types of risks fall under this category:
- Operational risk – relates to the robustness of your internal processes, people and systems
- Compliance risk – relates to your organisation’s compliance with laws, regulations, rules, related self-regulatory standards, and codes of conduct applicable to its activities
- Conduct risk – relates to how appropriate, ethical or lawful the behaviour of your organisation’s management and employees is.
Why care about these risks? Because according to ASIC’s Corporate Governance Taskforce: “The reality is that non-financial risks have very real financial implications for companies, their investors and their customers.”
Our non-financial risk learning
Check out some highlights from our current programs and CPD topics to help get your organisation’s non-financial risk training sorted, and you’re welcome to get in touch if we can assist.