EFFECTIVE ORGANISATIONAL STRUCTURE OF THE CORPORATE RISK MANAGEMENT

Abstract

While risk management effectiveness assessment problem of the company has been already actual in post crisis period, reasonable risk management organizational structure can be considered as a crucial internal factor of the effective risk management. Due to this aspect is not fully covered in national academic literature, importance of the issue is not correctly understood among the business representatives, the target of that research is to analyze and correct best practice pillars in risk management organization. The theoretical and methodological base of the research includes cumulative theoretical knowledge in riskology (P. Bernstein, F. Knight, V.I. Avdijskij, V.M. Bezdeneznyh, etc.), last analytical reviews about risk management development and surveys of the leading international companies and professional societies (McKinsey, KPMG, Ernst&Young, Institute and Faculty of Actuaries in Great Britain). Using common scientific and specific research methods, the most popular practice of Three Lines of Defence is systemized in frame of ERM for the purpose of risk management organization, hypothesis for the reasonability of that formulated approach is provided in the paper. Findings are also valuable for the practice to improve risk management effectiveness of the company and provide its sustainability.