Risk Management Crucial for Financial Organisations in Lesotho to Stay Resilient
In today’s dynamic business landscape, risk management has become an essential component for financial institutions in Lesotho to ensure they remain agile and resilient to changes in the ecosystem. To achieve this, organisations must develop or adopt a robust risk framework that governs their risk-taking activities.
The Role of Internal Audit
The internal audit function plays a critical role in ensuring the effectiveness of the risk management framework. However, due to the volume of work and complexity of engagements, external consultants may be engaged to conduct independent audits of the risk management function. HLB Lesotho offers such services, which also includes providing quality assurance and training for internal auditors on conducting risk management audits.
Risk Management Services
In addition, the firm provides advisory services on various risk management issues, including:
- Cyber Risks: HLB Lesotho helps organisations mitigate potential threats by developing strategies to manage and mitigate cyber risks.
- Risk Assessment and Mitigation: The firm’s experts assess potential risks and develop strategies to minimize their impact on the organisation.
Operations Audit
Operations audit is essential for financial institutions in Lesotho to identify inefficiencies that may be caused by complacency, poor process design, or poor alignment of processes to strategy and structure. These inefficiencies can be classified into:
- Mura (Unevenness): Inefficient use of resources due to uneven workflows.
- Muri (Overloading): Overworking employees, leading to burnout and decreased productivity.
- Muda (Waste): Waste of time, money, or resources due to inefficient processes.
HLB Lesotho assists organisations in conducting operations audits and advising on implementing continuous improvement programmes, business process changes, outsourcing, and technology adoption. The firm’s experts assess the effectiveness of an organisation’s operational processes and provide recommendations to improve efficiency and productivity.
Creating Value
In an interview with a financial expert, it was noted that “operations audit is not just about cutting costs but also about creating value for the organisation. It’s essential for financial institutions in Lesotho to identify areas where they can improve their operations and create value for their stakeholders.”
By adopting robust risk management practices and conducting regular operations audits, financial organisations in Lesotho can ensure their resilience and competitiveness in today’s dynamic business landscape.