So why don’t most Enterprise Risk Management system work? Simply, they don’t “manage” risk, they just record it. Manage is a verb not a noun. It is activity not an item. Making a list might be adequate for those who want to check off regulatory compliance, but it’s does not produce a ROI. Continue reading
Risk management is suffering from too much consultant-speak – mystifying what is a standard business practice. When inducting new staff in the concepts of risk management, I use the most obvious analogy which clarifies the issues simply: that of our own mortality. Continue reading
I have often written on my view that there is an over emphasis these days on Black Swans in risk management. The Brexit vote not only shot shockwaves through financial markets but has created a whole new paradigm to world economic stability both short and long term. And if Risk is defined as uncertainty then as of today, this must be one of our greatest risks. Continue reading
Effectiveness is the holy grail of Compliance Management. Whether regulatory or ERM, ensuring business is conducted as intended is the base requirement to optimising your organization’s performance.
Let’s face it, business spends its money where it will deliver the best return, i.e. to shareholders, so the key to increasing the compliance budget is to measure compliance as a factor of performance not as a safety net. Continue reading
Last week saw the latest in misguided innovation talkfests, the AFR Innovation Summit #Innovation16. For several days academics, public servants, journalists, and corporate employees put forward their insights into how Australia can develop an Innovation culture.
Excuse me, but this is a bit like 3 high street bankers sitting around discussing the plight of the homeless. Very few of these self-appointed experts have ever started a business let alone been directly responsible for innovation in the marketplace. Continue reading