Category: Enterprise Risk Management

Rethinking and Elevating the Status of Risk Management

Enterprise risk management (ERM) is at the heart of effective decision making and should be at the forefront of everybody’s thinking within the organization. Today’s risk-filled macroeconomic environment requires front-line employees, middle management, senior executives and the board to take a proactive approach in managing the various risks the business is exposed to. Risks are […]

Embracing Risk for Improved Business Performance

Barings Bank rogue trader (1995), LTCM hedge fund failure (1998), Enron bankruptcy (2001), Parmalat accounting fraud (2003), AIG accounting scandal (2005), Lehman Brothers bankruptcy(2008), Bennie Madoff ponzi scheme (2008), Toyota unintended acceleration recalls (2009) , BP Deepwater Horizon oil spill (2010), Fukushima tsunami and nuclear accident (2011), Libor-fixing scandal (2012), JP Morgan $14.6 billion regulatory […]

Minimizing Risks of Outsourcing Failure

As the challenge on CFOs and other business leaders to do more with less continue to increase, we have witnessed an increase in the number of outsourcing arrangements across all industries. Most organizations, led by their CFOs have outsourced selected projects, functions and delegated the day-to-day management of these activities to third-party organizations. Many at […]

Five Factors to Consider When Establishing Risk Tolerance

Enterprise Risk Management (ERM) is all about the organization making sure and proving that it is identifying and managing the significant risks to which it is exposed to. Failure to identify and manage these risks can have devastating effects on business performance and the long term value of the organization. If we look back at […]

Boards Must Play A Leading Role in Effective Risk Oversight

Over the past decade, the total number of risks affecting organizations has increased rapidly. Organizations now operate in an environment that is characterized by risk exposures that are more complex, more interrelated and potentially more destructive than ever before. As a result of this evolving business world, there is increased pressure on senior executives and […]

Ten Qualities of A Good ERM Report

In order to make informed decisions, risk reporting must be of high quality. Managers need to be able to evaluate the suitability of the risk management methods they are employing to identify, assess, mitigate and monitor enterprise risks. Are these methods working? Do employees know when these methods are not working? What are the consequences […]

Managing Business Risks is the Responsibility of Each Employee

Enterprise risk management (ERM) is critical for the successful execution of the organization’s strategy. Failure to identify, assess, manage and monitor key risks can have devastating effects on the long-term performance of the business. In order to successfully identify, assess, manage and monitor key risks managers need to establish and implement a compelling enterprise risk […]

Identifying, Assessing and Managing Risks From an ERM Perspective

In his book, The Black Swan: The Impact of the Highly Improbable, Nassim Nicholas Taleb defines “Black Swans” as random and rare events that underlie our lives and business, are nearly impossible to predict and have a huge impact when they materialise. According to Taleb, “Black Swans being unpredictable, we need to adjust to their […]

Moving From Reactive To Proactive Risk Management

As the risk landscape continues to evolve and threaten the stability, survival, value-creation processes and performance of the business, the board and management team must move from reactive to proactive risk management. The business environment is changing at unprecedented pace. The huge transformational shifts taking place within the economic, environmental, geopolitical, societal and technological realms […]

Improving the Organization’s Internal Control System

One of the responsibilities of management is aid the creation, reporting and preservation of organizational value. In most cases, the management team struggles because of implementation of poor internal systems. Having an effective internal control system that manages risk and reduces the risk of business failure is important for organizational value creation and preservation as […]

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