Operational risk is something all organisations have to deal with. It is inherent in all business activities, and can include fraud, physical damage, business disruption, transaction failures, legal and regulatory breaches, employee health and safety hazards. If not carefully managed and monitored, it may result in financial losses for the
What is Enterprise Risk Management (ERM), and what are organisations looking for, when they implement it? ERM may be described as methods of risk management that are applied to identify and mitigate risks faced by the entity (or enterprise). By applying the principles of ERM and its tools, users hope
According to COSO, internal control is a process designed to provide reasonable assurance of the effectiveness and efficiency of operations; reliability of financial reporting; and compliance with applicable laws and regulations. These relate to the business’s objectives, performance, profitability and resources; its financial health; and its compliance with the laws
Properly applied, a business continuity plan does more than keep the firm running in the event of a crisis. Business continuity planning is actually a proactive business process that helps an organisation identify its challenges, weaknesses and threats leading to operational disruptions. Mitigative measures can then be worked out and
A strategic imperative is a business goal or objective that has the highest priority. For some companies, it could be building their brand; for others it could be expanding internationally. Or it could be a concerted move to digitise the business and leverage on online platforms within a certain timeframe.
When the financial crisis of 2008 hit, businesses, regulators, stakeholders and industry in general were forced to sit up and take notice because everybody felt the pain. Glaring deficiencies in the way things were done, became obvious. What also became obvious was that the way things were was not ideal,