Objectives and Strategies
In order to be effective, “risk management needs to be aligned with an organization’s
overall objectives, corporate focus, strategic direction, operating practices, and internal
culture” (Treasury Board of Canada, 2001). This can be accomplished by combining the
corporate risk management profile, the risk management goals and priorities, and the
accepted risk tolerance or retention limit (Vaughan, 1997, Williams, 1985). As a starting
point in the development of a risk management policy statement, there are several
considerations that are essential to obtaining the organization’s objectives.