Although in ISO 31000 monitoring risk is another of its key tenets, I again see little monitoring in most risk management systems. Periodic review, dashboards, heat maps, and KRI reports are all Review (a different ISO 31000 tenet) not monitoring. IoT technology can deliver real-time monitoring of risk for more than just physical environmental metrics. Continue reading
The failed Risk Management practice of the ubiquitous risk matrix will finally be laid to rest in the 2020s. Vague subjective estimation of likelihoods and consequences will be replaced with Predictive Analytics objective predictions, based historical patterns and current trends, leading to informed risk based decision making. Continue reading
“It must be remembered that there is nothing more difficult to plan, more doubtful of success, nor more dangerous to manage than a new system. For the initiator has the enmity of all who would profit by the preservation of the old institution and merely lukewarm defenders in those who gain by the new ones. ” Niccolò Machiavelli. Continue reading
Probably one of the most recognized but least understood disruptive technologies for Risk Management in the 2020’s is Big Data.
This is the 2nd in the risk analytics series covering the Top 10 Disruptive Technologies that will change Risk Management as we know it being:
10. Scenario Analysis – to provide operational management with decision marking collateral
9. Big Data – to identify trends and evolving risk Continue reading
Introduction
In 2015, the California Legislature passed the State Leadership Accountability Act (SLAA). The act updated previous legislation. The purpose of the update was to broaden the reporting requirements to operational and programmatic activities. It reemphasized the responsibility of management to establish and maintain effective systems of internal controls. It also set up bi-annual reporting requirements and included risk assessment as part of the internal controls. To assist departments and agencies with the risk assessment, in 2017, the Department of Finance published the State Leadership Accountability Act Risk Catalog. Continue reading