Mr Rockson Kwesi Dogbegah, President of Institute of Directors-Ghana (IoD-Gh) says the lack of appetite towards risk management is the cause of the collapse of some businesses over the years.
He observed that others, who had developed the appropriate architecture to dealing with risks had survived.
Mr Dogbegah said this in a virtual seminar on Risk in a Global Economy organised by loD-Gh in collaboration with the International Institute of Risk and Safety Management.
He said as Directors, their responsibility was to ensure the achievement of their organisational goals and objectives in the short, medium, and long term.
“We are, therefore, under obligation to develop the appropriate risk management policies to deal with risks sustainably to survive,” he added.
Mr Dogbegah said the ability to survive as leaders and organisations was dependent on how they leveraged on their strengths and opportunities in creating value and dealing with weaknesses and threats encountered.
The President said placing stakeholders at the center of the value creation modules and looking beyond profit maximization would enable them to deal with some negative effects of the risks they were confronted with.
He assured stakeholders of the Institute’s availability to support organisations to develop the appropriate governance architecture to guarantee organisational success.
Madam Helen Barge, Chief Executive Officer of Risk Evolves Limited, said risks should be managed to protect employees and enhance organisations’ sustainability.
She said the risk could be identified in politics, economics, legal and environmental areas among others.
Madam Barge said risks could be handled in four main ways- tolerating it, treating it well, terminating, or transferring it.
“You remain accountable for risk even if you transfer it,” she added.