Case Study: Enhancing Risk Reporting for a Professional Services Industry Body
THE CHALLENGE
A leading Australian professional services industry body (the “Client”) represents thousands of members in a leading profession. The Board and executive team were focused on maintaining high standards of governance, safeguarding the reputation of their members, and ensuring that risk oversight and reporting kept pace with evolving regulatory, operational and reputational pressures.
While the Client had developed a risk management framework that was robust in many respects, the Board and Audit & Risk Committee identified that risk reporting could be strengthened. In particular:
- Risks were inconsistently categorised across the organisation, making it difficult to compare strategic and operational risks.
- The risk rating and evaluation methodology lacked sufficient alignment with the Board’s expectations for escalation and oversight.
- Reporting to the Board was generally sound but could deliver more clarity on trends, emerging risks and the evolving risk landscape facing the industry body and its members.
OUR APPROACH
InConsult was engaged to conduct an independent review of the Client’s existing risk management framework, with a focus on risk categorisation, rating methodology and board reporting. The engagement comprised three core phases:
1. Framework Review & Benchmarking
We assessed the existing risk management framework against best-practice standards (AS ISO 31000:2018) and peer industry bodies. We evaluated how risks were identified, categorised, rated and escalated.
2. Risk Categorisation & Rating Workshops
We facilitated workshops with the Board, Executive Leadership Team and risk owners to refine how risks were grouped (e.g., strategic, operational, compliance, reputational), to standardise risk rating scales (likelihood-impact matrix) and to align evaluation protocols with the risk appetite statement approved by the Board.
3. Enhancing Board Reporting
Working with the Board, we redesigned the risk reporting template to provide greater clarity: showing trending movements, linkage between controls and residual risk, and clear escalation triggers for principal risks. We also developed guidance for management on using the revised categorisation and rating methodology.
OUTCOMES & IMPACT
As a result of this engagement:
- The Board now receives risk reports that are more consistent, transparent and aligned to the risk appetite and oversight expectations of the Committee.
- Risk categories and rating scales are standardised, enabling clearer comparisons across risk types and time periods, and better identification of emerging risks.
- Management’s ability to evaluate, escalate and monitor key risks is improved – leading to stronger oversight and more timely decision-making.
- The organisation’s risk-culture has strengthened – risk owners are now more confident in their categorisation, rating and reporting, reducing ambiguity and improving accountability.
By enhancing how risks are categorised, rated and reported, the industry body has improved its governance of risk and positioned itself to respond more proactively to both current and emerging challenges (such as regulatory change, member expectations and reputational issues). InConsult’s independent review and guidance helped turn a sound risk framework into a more effective mechanism for Board oversight and strategic risk governance.
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This case study is drawn from a real-life engagement/project between InConsult and our client. While client details are not disclosed for commercial and confidentiality reasons, this case study is based on a real engagement and reflects genuine results and outcomes. Specific client references and project details can be shared with prospective clients during the proposal process.