Risk Management Report
The risk report management report provides an overview of the current risk landscape and outlines the strategies and measures undertaken to mitigate these risks. The report covers various risk categories, including political, economic, environmental, technological and operational risks. It highlights the importance of proactive risk management and identifies areas of improvement.
The authorized person must comply with what is stated in the text of Article No. (4-4) of Chapter Four (Risk Management) of Book Six (Internal Policies and procedures of the Authorized Person) of the Executive Regulations of Law No. 7 of 2010, which stipulates the necessity to provide of sixty days from the end of the reporting period, provided that the aforementioned report is prepared at the end of the first half and the end of the financial year of the authorized person.
Risk management in Kuwait (authorized by the Kuwaiti Capital Markets Authority), involves a systematic approach to identify, assess and mitigate potential risks across across various sectors. The procedures for risk management typically follow a structured framework, which includes the following steps:
Risk Identification: The first step is to identify and define the risks that may affect the economy, infrastructure and society. This involves analyzing various sources such as historical data, expert opinions, industry reports and emerging trends.
Risk Assessment: Once the risks are identified, a thorough assessment is conducted to determine their potential impact and likelihood of occurrence. This involves analyzing the severity of each risk, evaluating the vulnerability of systems and infrastructure and estimating the potential financial, social and environmental consequences.
Risk Mitigation: After assessing the risks, strategies are developed to mitigate or reduce their impact. This may involve adopting regulatory frameworks, implementing safety standards, enhancing security measures and investing in infrastructure development.
Risk Monitoring and Reporting: Risk Management is an ongoing process, and continuous monitoring of risks is crucial. Regular monitoring helps identify changes in risk profiles, emerging risks and effectiveness of mitigation measures.
Review and Improvement: Risk Management procedures in Kuwait are periodically reviewed and improved to adapt to changing circumstances, emerging risks, and lessons learned from past events. Regular evaluations and feedback mechanisms help identify areas for improvement, update risk management strategies, and enhance the overall effectiveness of risk management practices.
Here's how we can help
Alkhuzam assists businesses of all sizes and industries in identifying and controlling risks in order to not only meet legislative requirements, but also to create long-term value through the efficient and effective management of risks. We see it as a challenge to put up a strong risk management system that is in line with your company's economic needs and protects your future success.