An expert has highlighted the importance of transparency if businesses are to manage risk effectively.

Vicky Kubitscheck, chief risk officer and compliance director at Police Mutual Group, stressed the need for companies to foster transparency from top to bottom.

Speaking to Business Reporter, she stated: "Transparency goes beyond risk management. It is the basis for running a business and running it well, and reflects a cultural aspect as well."

Ms Kubitscheck added that the role of business transparency has evolved and can demonstrate that an organisation is being run ethically as well as in a sound financial manner.

"All parts of the organisation from the ground up need to have clarity in the way the business is being run. That has to permeate through," she stated.

The expert called for transparency to be "built on proper grounds" and for it to be truly effective staff at all levels of a business need to be engaged with the concept.

Ms Kubitschek was speaking ahead of the Risk to Reward 2015 conference, which is taking place in London today (April 29th). The event will focus on a range of risk-management related topics, such as innovation, governance and talent management.

According to recent research from PwC, leading risk managers are able to effectively understand how different threats are connected and the impact this can have on their organisation.

Some 70 per cent of 'risk management leaders' were found to be capable of identifying these connections, compared to only 23 per cent of non-leaders.