Risk Management Insights

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02/03/2018 / Enterprise Risk Management, Risk Culture, ERM

How to promote Risk Culture in your team

In a recent discussion with a colleague on preparing for 'black swan' events, we concluded that regardless of the size, type and structure of an organisation, it was having the right risk culture that was the key success factor in preparing for and surviving an improbable event.

Our view is that getting the right culture to support risk management across the business is the most important ingredient for success. But what actually is this thing called 'risk culture' and where can you get it? We believe that risk culture is the system of values and behaviours that are present in an organisation and guides all the decisions related to risk, made by management and employees. 

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12/09/2017 / Compliance Management, Risk Culture, ERM

Reputation Damage - Risk Event or Risk Impact?

Looking back over the last 12 months, corporate scandals continue with the finance industry seemingly always managing to make the headlines. Wells Fargo fake accounts in the US, CBA anti money laundering issues in Australia are two examples. The flow on effects from these scandals are often similar:

  1. Executives and CEO's involved are ushered out the door - key person risks arise.
  2. Fines were or will be imposed by regulatory agencies, which seem larger and more punitive in recent years.
  3. Class action lawsuits are attempted on behalf of disgruntled shareholders resulting in additional legal fees and potential settlement costs.
  4. Strategic growth objectives are derailed, as the companies involved need to batten down the hatches to recover from the scandal.
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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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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 Analysis

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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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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09/06/2016 / Enterprise Risk Management, Risk Audit, ERM, Risk Maturity

ATO implements Protecht's Enterprise Risk Management System

NOT SUCH A TAXING TIME

Some months ago Protecht was delighted that Protecht.ERM was selected by the ATO as the ATO’s corporate-wide risk and governance system. After just a short time, under the guidance of Jodie Thomas, Executive Director, ATO Corporate and the ATO project implementation team, the ATO is already recognising some of the immense benefits that Protecht.ERM is capable of delivering.

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11/11/2015 / Enterprise Risk Management, Risk Management, ERM

The Experience of Having a Risk Management System

A REAL LIFE APPROACH

Risk management is a continuous journey. In our personal lives we instinctively make risk based decisions according to our own risk appetite. As we move from our teenage years to adulthood to middle age to our senior years, our internal risk management evolves and matures. The same applies with the organisations we work within. Their external and internal context evolves, their risk management matures and evolves to meet the challenges of the changing environment.

This week’s blog is an interview with Michael Blacker, Chief Risk Officer at Police Bank. In this interesting conversation, he shares his experiences and challenges with the evolution of risk management at Police Bank and explains how Protecht.ERM is being used to embed risk management throughout the organisation. We hope that you enjoy the interview.

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