Risk Management Insights

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Risk in Motion, Risk Reporting, Video

Is your risk management a little static?

How do we make decisions based on risk reward when the risk information is out of date? Traditional point-in-time reporting in risk management can result in an artificial view of how your organisation is doing. In this video, David Tattam talks about what you can include in a Risk in Motion report to create a dynamic risk profile of your organisation.

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Protecht.ERM system, Protecht Culture, Video

How we use the Agile Methodology to help our clients

Protecht's People & Culture Manager, Cassie Thomson, talks to the Chief Technology Officer, Peter Walker about how the development team adopted the Agile Methodology to benefit our clients.

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Enterprise Risk Management, ERM, Risk in Motion, Protecht.ERM system

Enterprise Risk Management - Connecting the Dots. RiskInMotion

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.

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Protecht.ERM system

How much do additional modules cost in Protecht.ERM?

In this video, Alf Esteban talks about one of the questions we get asked the most.

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Decision Making, Video

Is risk management front and centre in your decision making?

In this video, David Tattam breaks down the questions you should be asking to better integrate risk management in your organisation's decision making.

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Compliance Management, Enterprise Risk Management, Risk Analytics

Managing Risk with the Second Line of Defence Launchpad

The Second Line of Defence Launchpad within the Protecht.ERM system is an effective and interactive visualisation designed specifically for the Line 2 Risk and Compliance Management teams to use in their role of reviewing and challenging Line 1, together with independent reporting and escalation. Read on to find out more.

Why a Launchpad?

A Launchpad can be configured as the first screen a user sees when they log into Protecht.ERM. This ensures that users first see the most important and relevant information to carry out their responsibilities.

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Compliance Management, Risk Management, Risk Appetite, Decision Making

Can I? Should I? Would I? Using compliance as a decision making tool

Compliance is the act of “conforming to rules”. Deciding to, or not to, conform to rules affects the decisions we make. Compliance is therefore an integral part of decision making.

The question is “What are the rules that we will apply in our business decisions?” These rules can come from two primary sources as described by the ISO 19600 Standard: “Compliance Management Systems”. This standard recognises two main types of compliance obligations:

• Compliance Requirements: Requirements that an organisation has to comply with. These normally arise from external regulatory requirements and contractual requirements.

• Compliance Commitments: Requirements that an organisation chooses to comply with. These are normally manifested through internal policies, practices, codes of conduct, etc. 

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ERM, Risk Manager, KRIs, Press/Media

Importance of 'Challenge' in Risk Management

In my earlier blog “What we can all learn from the APRA prudential inquiry report into the CBA” I noted that one of the strong themes of the report was the importance of “Challenge”. In fact, it is mentioned approximately 75 times including in the following recommendations:

  • Recommendation 7. The CEO ensure that the Executive Committee…. engages in constructive challenge and debate.

  • Recommendation 10. CBA ensure that business unit Chief Risk Officers have the necessary independence to provide effective challenge to the business. 

  • Recommendation 27. Senior leaders reinforce key behaviours of increasing self-reflection, giving and receiving constructive challenge and dealing with conflict effectively.

For those familiar with the three lines of defence model, the second line of defence "Risk Management" has as its key role, “Review and Challenge”. Read the article: Risk Governance and the Three Lines of Defence.

This blog takes a look at:

  • The meaning of challenge.
  • The importance of challenge in supporting strong risk management.
  • The reasons why challenge is so difficult in practice?
  • What a good challenge culture looks like and how can it be practically embedded within an organisation’s culture.

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Enterprise Risk Management, Risk Governance

Risk Governance and the Three Lines of Defence

Effective risk management requires governance structures and processes commensurate with the organisation’s context. Regardless of the organisation’s size and complexity, implementation of the three lines of defence should be the first principle of an effective risk management framework.

At each line of defence there needs to be risk governance to support and provide oversight to the risk management framework

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ERM, Risk Manager, KRIs, Press/Media

What we can all learn from the APRA prudential inquiry report into the CBA

Taking Risk Management to the next level 

The APRA report of the prudential inquiry in the Commonwealth Bank of Australia (CBA) was issued on 1 May 2018 https://www.apra.gov.au/media-centre/media-releases/apra-releases-cba-prudential-inquiry-final-report-accepts-eu. On the following day, I was flying from Sydney to Perth and downloaded the report to "skim" read the key points on the flight.

I began reading on take-off and on landing 4 hours later, had completed the full 111 pages. I could not put it down.

Rather than a negative feeling of what we are doing wrong, I saw instead a rich source of information that we can use to take risk management to the next level.

On page 5, the report states:

"The Report that follows may read as a long catalogue of shortcomings. That would be too narrow a read. The Panel acknowledges the undoubted financial strength and acumen of the CBA, its global standing, and the avowed commitment of staff to servicing customers. CBA needs to translate this financial strength and good intent into better meeting the community’s needs and the standards expected of a systemically important bank in Australia. The Report is a roadmap for this journey."

It is also clear that many other financial institutions accept that they could change the name "CBA" on this report to their own and it would be equally as valid. At Protecht, we see this as a must-read for anyone serious about taking their risk management to the next level. It is, as APRA states, "a valuable roadmap".

The following is a summary of the main lessons we can learn from the report, and also the main themes that run through the report. 

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