Our strategic performance in 2018-19
Our risks and their management
As such we consider risk
in three broad types:
Risks to the accountancy profession and the value that accountancy brings to society
Risks to (the needs of) members, affiliates and students
Risks that if left to crystallise could impact on our ability to deliver our corporate plans, strategy and long-term sustainability.
The overall objective of our enterprise risk management (ERM) approach is to help link strategy and risks, as clearly as possible, so that our decision-making is transparent, both internally and externally, and based on robust evidence.
Our ERM approach ensures that we have a holistic view of the risks and opportunities facing us drawing on our internal skills and knowledge, and consideration of the wider environment in which we operate, along with drawing on the expertise of our external parties.
Ten risks are currently held on our corporate level risk register (10 for the year ending 31 March 2018).
Ownership and oversight
Our corporate risk register records the top cross-cutting risks and uncertainties we believe ACCA faces. These risks, should they crystallise, have been judged to pose a significant threat to the successful delivery of our Strategy to 2020 and to ACCA’s longer-term sustainability.
Each corporate-level risk is owned by a member of the Executive team, with the entire team reviewing all corporate-level risks every month to reflect any market, legislative and/or operational developments and adjusting mitigation and threat levels accordingly.
Our Audit Committee exercises independent oversight of both all ACCA’s corporate risks and our ERM framework.
In line with ACCA’s mission and core values, we remain committed to a bold and innovative approach to market development, so we can maintain our reputation for being at the forefront of responding to market needs, wherever these needs might be. Because the integrity of our qualification is at the heart of our brand, our corporate risks have a strong focus on minimising threats to the standing and value of the ACCA brand.
Risk appetite definitions
Hungry: eager to be innovative and choose options offering potential higher rewards, despite greater inherent risk.
Open willing to consider all potential options with a bias towards options likely to prioritise the certainties of successful delivery over potentially high-reward strategies.
Averse preference for safer options which have a lower level of residual risk but which may have more limited upside potential.
Corporate risks and uncertainties
|Strategic||Uncertainty around student behaviour||Sustain||Open||
|Strategic||Increased protectionist behaviour||Attract||Hungry||
|Strategic||Increased competitor behaviour||Attract||Hungry||
|Reputation||Failure to comply with existing, changing or
new regulatory or legislative requirements
|Reputation||Loss of data or sensitive information||Flexible delivery||Open||
|Operational||Failures in our end-to-end exam processes||Operational excellence||Averse||
|Strategic||Distribution network unable to support changes to ACCA’s business model||Sustain||Open||
|Strategic||Failure to comply with educational regulators’ requirements||Operational excellence||Averse||
|Reputation||Supporting expectations, and ensuring exam progression, against increasing student diversity||Develop||Hungry||
|Strategic||Challenges and opportunities arising from Brexit||Sustain||Open||