Abstract
M.Com. (Business Management)
Risk management is an important factor in ensuring business and project success.
Thus, risk management methodologies are constantly being developed and improved.
In order to define the goals, specify the process and manage progress, it is necessary
to have a clear view of the enterprise‟s current approach to risk, as well as a definition
of the intended destination. Benchmarking offers the opportunity to determine the
current maturity capability against agreed frameworks, and also provides a structured
route to improvement. A generally accepted framework is needed in order for an
organisation to benchmark its current maturity and capability in managing risk, and this
framework should also assist in defining progress towards increased maturity. Being an
assessment tool, a risk maturity model is designed to measure risk management
capability and to provide objectives for improvement
The purpose of the research is to identify, adapt and recommend a sound risk maturity
model, together with an easily applicable and effective questionnaire for use to measure
the risk capability maturity of a Life Insurer (“Liberty Life”). To achieve this aim, six risk
management maturity models were identified through a literature review and the
proposed model was further supported with long-term insurance specific attributes of
risk management as advocated by leading corporate governance codes and regulations
such as King III and the newly proposed Financial Services Board (FSB) Solvency
Assessment and Management (SAM) regime. Despite the widening consensus on the
value of risk management, effective implementations of risk processes into
organisations are not common. The benefits of mature risk management have been
discussed in Chapter 2.
By adopting an exploratory approach, the researcher conducted a qualitative research
project, in the form of an in-depth case study, on a multinational financial services
organisation. Unstructured face-to-face interviews were held with senior executives and
risk managers in order to gather data regarding what they perceive as key attributes,
including acceptable measurement criteria, of a risk maturity model appropriate and
effective for implementation in their organisation.