Objectives of the Award
- To recognise companies that have established and disclosed adequate and effective risk management practices to support strategic direction;
- To highlight importance of establishing an adequate and effective risk management framework to generate long term sustainable success;
- To raise awareness of the core and leading risk management practices required and adopted in leading in a period of technology and disruption.
Categories of the Award
Awards will be presented in the following categories:
- Companies with market capitalisation of S$1 billion and above;
- Companies with market capitalisation of S$300 million to less than S$1 billion;
- Companies with market capitalisation of less than S$300 million;
Selection and Judging Process
The selection and judging process consists of a three-stage process:
In Stage 1, all listed companies are subjected to a preliminary screening using the following sources:
- Corporate governance rankings eg. Singapore Governance and Transparency Index score and ASEAN Corporate Governance Scorecard;
- Performance results e.g. return on equity
- Potential 'red flags' of poor risk management e.g. SGX watchlist, significant unplanned incidents or events (using publicly available information)
In Stage 2, a final shortlist of companies is evaluated against a set of detailed Risk Management review criteria.
In Stage 3, a panel of judges reviews and evaluates the shortlisted candidates based on the information provided by the companies and evaluators.
The following criteria are used to identify the final shortlist of companies:
- Risk strategy and appetite which is well articulated, formalised and integrated into the enterprise-wide decision making process at all levels
- Formalised risk governance structure with clear roles and responsibilities across the various lines of defense
- The extent to which the organisation’s risk culture permeates across all levels of management and staff.
- A clearly defined and effective risk identification, assessment, and measurement process which aligns the organisations strategy.
- Adequate and effective risk management and internal control systems.
- Risk reporting and insights are timely and transparent to support internal and external stakeholder needs.
- The extent to which technology is used to enhance data quality, governance and risk analytics.
In addition, the extent to which companies disclose information in relation to:
- Innovation and Technology Governance
- Sustainability Governance
- Continuous Improvement of Enterprise Risk Management
The organisation and evaluation for the Best Risk Management Award is led by the Singapore Institute of Directors, with the support of KPMG Singapore.