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Risk Management Insights

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09/02/2017 / Enterprise Risk Management, Risk Culture, Risk Manager

Our Top 5 Risk Management blogs in 2016

It is already February 2017. The year certainly feels like it is flying by. We are glad to see that our Risk Management Insights Blog continues to be read by thousands of professionals such as you, from all around the world. We all seem to receive a lot of information every day from many different sources. So to ensure that you didn't missed out on some of the articles that we have shared, we thought we would recap on some of our articles from 2016.

So we have made a selection of the '2016 Top five most read blogs'. We hope you enjoy the content and if you have not subscribed yet, just click here to receive the next articles directly in your Inbox. Enjoy.

1. What does it take to be a Risk Manager?

What are the key skills and characteristics needed to be successful in this role? Here is my list:

  • Risk management is to a large degree an art form. This requires a strong right hand (artistic) brain, able to cope with qualitative and inexact concepts and able to “see” into the future.
  • At the same time, the risk manager needs to be logical, analytical, problem-solving and exhibit a high degree of common sense.
  • The risk manager must be commercially astute and demonstrate a high degree of business acumen. Read more.

Operational Risk Management and the wider defined Enterprise Risk Management are often touted as a new concept. While the methodologies and processes employed may have been enhanced in the recent past, risk management is hardly new. Humans, arising from the instinct for survival, have been using and developing risk management techniques from the beginning of time. Continue reading here.

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26/01/2017 / Enterprise Risk Management, Inherent & Residual Risk, Risk Controls

Inherent Risk – Is it useful?

The ISO 31000:2009 standard does not refer to “inherent” risk. Is this a deliberate omission and if so, what is the reason? This leads to the question as to whether inherent risk is a useful concept in risk management and risk assessment. The main areas of contention are:

What does Inherent Risk mean?

There are few common definitions in risk but “Inherent risk” is commonly defined as “the risk without considering internal controls” or alternatively “a raw risk that has no mitigation factors or treatments applied to it”. Residual Risk on the other hand is commonly defined as “the level of risk remaining after controls have been applied”. 

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06/01/2017 / Enterprise Risk Management, Risk Culture, ERM, Operational Risk, Risk Manager

Changing the Risk Conversation

Three Key Questions

Have you ever tried having a conversation with a risk practitioner about risk management concepts without using the word ‘risk’? Similarly, as a risk practitioner, have you had a conversation with a quality management practitioner without them mentioning the word ‘quality’?

One of the biggest issues we face as risk practitioners is having conversations with non-risk practitioners, especially front line people, about what we do and what we need them to do to ensure that risks, (there is that word again), are adequately identified, mitigated and monitored. Wouldn’t it be a more useful conversation to talk in terms that the front line is used to and understands? Read article 'Are you a Risk Manager?'

Front line staff know what they need to do to achieve their objectives – be it sales targets, transaction processing targets, customer satisfaction targets, quality targets, or whatever it is that they do that collectively allows the organisation to achieve its objectives. They understand their business processes and where shortcuts can be taken to ‘get things done’. They know when other staff are not following procedures – with malicious intent or not.

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16/12/2016 / Protecht News & Events, Risk Culture, Risk Management

2016 - The Year That Was

2016 Done and Dusted

Over the last three weeks we have had Christmas parties in Melbourne and Sydney for our clients, as well as our staff Christmas event. (Check out more photos at the end of the post.) Needless to say, we are all looking forward to some downtime leading into the New Year.

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06/12/2016 / Enterprise Risk Management, ERM, Risk in Motion

Enterprise Risk Management - Connecting the Dots

Connecting the dots (in this case, the risks).

It has been a bit of a journey over the last 15 years. At Protecht, we started with the vision of a SaaS enterprise risk management solution that allowed connection of risk to the core components of what was back then, considered an ERM framework. This meant that our central library of risks was not only used in the risk and control assessments but also linked to key risk indicators, attestations and incidents. This enabled our client base to get a more fluid picture of risk and was the genesis of the RiskInMotion™ concept.
 

What was missing back then was the business intelligence engine to bring it all together.

Roll forward to 2016 and there are even more dots to connect. Over the last 5 years we have seen our clients rapidly build and deploy the following additional web-based forms to capture, workflow and report on risk related information pertaining to:

  • Fraud
  • Supplier due diligence
  • Conflicts of interest
  • Internal audit findings
  • Complaints
  • Compliance breaches
  • Business continuity plans and tests
  • Conflicts of interest
  • New products evaluation
  • Ex gratia payments
  • Policy management
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22/11/2016 / Bow Tie Analysis, Risk Management, ERM, KRIs

Effective Risk Management Tool: Bow Tie

Protecht loves Bow Ties, both formal and informal!  Bow Tie analysis has been around for longer than you might think. 

While some industries including oil, gas and mining have been using the bow tie consistently for years, at a broader level it appears that other industries, such as financial services, are also now realising the value of this simple yet effective risk management technique.

What does the bow tie do? 

Bow tie analysis provides a tool to identify and map out the different components of risk including root cause, risk events, risk impacts and controls. 

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09/11/2016 / Protecht News & Events, Risk Culture

COBA 2016 – Lead. Change. Grow. How does this theme apply to Protecht?


Protecht was proud to provide its continuing support for the COBA conference. This year’s event was held in a somewhat wet and windy Adelaide – more about that in another article where I talk about real-life Business Continuity Planning (BCP) - but we didn’t let the weather dampen our enthusiasm. As usual, the conference provided a great environment for attendees to learn about a wide range of topics applicable to them.

Myself, Selina and Rajes met with numerous people enjoying a chat and letting them know what Protecht has been up to over the last 12 months and what the next year has in store for us… The theme of the conference “Lead. Change. Grow.” was particularly apt for us this year:

Lead: Protecht continues to be a leader in the provision of risk management services and was proud to be able to show attendees its new Bow Tie app for the iPad which is free to download and try. The app allows you to complete a Bow Tie risk analysis on your iPad or iPhone instead of a whiteboard. The Bow Tie can then be shared amongst other app users for easy editing and updating. If you didn’t get the opportunity to download the app then go to the Apple app store, search for Protecht and get started today.

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31/10/2016 / Risk Culture, Risk Audit, ERM

The Risk of Gifts and Entertainment

As we approach the end of the calendar year, businesses grapple with the issue of giving and receiving gifts and entertainment to and from suppliers, customers and other stakeholders. This blog looks at the psychology of gift giving, the inherent risks in both giving and receiving gifts, and how the implementation of a ‘Gifts and Entertainment’ register can provide a defensible position if questioned about the probity of giving or receiving gifts.

The giving of gifts is ingrained across all cultures and societies. As an evolutionary trait, the act of giving a gift could be as old as humans. Individuals who generously gave would have more easily attracted a mate, and small gifts of food between members of a troop have been observed in our closest animal relatives, the chimpanzees.

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13/10/2016 / Risk Culture, Risk Analytics, Business Intelligence, Risk Intelligence

The Power of Risk Data - Risk Intelligence

Many organisations that have implemented risk management systems – be they for compliance management, incident management, health and safety management, financial risk management – have failed to realise the value of the data that they collect each day, week, month, quarter and year. The reason for this is that they have not appreciated the value of that data when viewed collectively, only focusing on the data in the context in which it was collected.

While focusing on ensuring that the right data is collected correctly is an essential element in the risk management process, the real value of a good risk management system is the ability to quickly and easily consolidate, translate and display the risk data in a meaningful way so that appropriate analysis can be undertaken and business decisions made, transforming it to risk intelligence.

The real benefit of your risk management system should stem from its ability to release the power of the risk data captured and stored in the system: taking risk data and transforming it into business intelligence.
 
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27/09/2016 / Enterprise Risk Management, Risk Culture, risk maturity, Risk Manager

Successfully Implementing an Enterprise Risk Management System

5 factors of success

I was thinking about the characteristics of companies that make the decision to acquire and then successfully implement an Enterprise Risk Management software solution. Why? Well, we are in the business of providing software solutions to companies so we are always interested in understanding, why certain companies get more out of ERM solutions than others.  However, upon reflection, I think it is also important for companies on the ERM journey to reflect on these factors of success in their own decision-making process. So what are some of the factors of success?

1. Company Size – Does Size Matter?

Often company size is considered as a driver for moving to an ERM software solution. The bigger the company, the greater the need as there are more people involved in the process. Manually following up actions, treatment plans and risk assessment becomes more time-consuming and prone to errors. So generally speaking, we would expect some correlation between the number of ERM installations and size.

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