Victoria Tan’s advocacy of risk management emanates from an unshakeable belief that risk management is a fundamental aspect of effective corporate governance and pivotal to a company’s sustainability.
Next to the CRO, Victoria Tan is the highest executive in Ayala Corporation responsible for risk management. Director and head of Ayala Corporation’s group risk management and sustainability unit (GRMSU), Tan reports to the CRO and assists in reporting to the board’s risk management and related party transactions committee.
She believes that a thorough understanding of risk is one of the top drivers of a company’s viability, profitability and brand success.
A TRULY IMPRESSIVE IMPACT
Since assuming leadership of the GRMSU in 2013, Tan has successfully introduced and played a major role in these areas:
Breaking down silos that transformed ERM
into a collaboration platform and synergy tool, transitioning from the traditional value protection to value creation framework.
Through the introduction of various risk assessments methodologies including the Black Swan approach and BowTie methodology, risk owners have become more involved in managing risks at various levels – and their perception of risks has evolved from fear to confidence. In addition, opportunities to manage the group’s common risks were identified, leading to the creation of councils that will address regulatory and political risks and innovation risks.
Strengthening the group’s risk-aware culture through risk management and risk-related trainings for employees and establishment of the group’s ERM Council – a venue for sharing best practices and aligning risk management frameworks and processes across the group. Tan also facilitates the risk assessments of the unlisted subsidiaries, which translates to savings in consultancy costs.
Reviewing the group’s risk financing strategy, resulting in better policy wordings, efficient administration and potential cost savings.
WHAT THE JUDGES SAID
Managing common risks within smaller councils and the thorough endorsement shows the measured impact Ms Tan has had on the organisation.