ORM and Organisational Prosperity, Is there a Link
All organisations want to be successful, or at least do well enough to satisfy their shareholders, and keep their various stakeholder groups happy. They also want this prosperity to be continuous, and, ideally, to increase over time. But there is one barrier that must be considered, inherent in all business
Appreciating how enterprise risk management works is crucial
Just implementing Enterprise Risk Management (ERM) doesn’t mean that all your organisation’s risks will magically disappear. That’s not how ERM works. It works when you keep working at it. But what does this mean, especially for companies which are convinced that ERM is the way to go, but lack the funds
Pro and Cons of Outsourced vs In-house risk management function
Risk management is best done in-house. Why? Because regardless of whether administrative risk management activities are contracted out to a third party or not, the practical management of risk will ultimately still have to be conducted by the organisation. However, this does not mean that companies should start from scratch where
How can risk managers operationalise strategic risk management?
When coming to grips with strategic risk, it’s helpful to consider why you need to manage it in the first place. After all, you already have a strategy – but what if it doesn’t work? Risk and strategy have a symbiotic relationship. You can’t have one without the other; one drives
Why should risk managers care about investment risk management?
Organisations cannot risk not caring about their investments. All investments, even the bluest of blue chips, carry a degree of risk; and all analysts agree that investment risk can never be eliminated. So the question of whether organisations should care about their investments or not, should not arise. It just
The gargantuan scope of Operational Risk Management
What constitutes Operational Risk (OR)? Just about anything. It can be as localised as a plumbing problem that makes the office toilets unusable, or new software that disrupts office systems across the organisation and its subsidiaries in different jurisdictions while making it difficult for customers to transact online. OR can be
Fraud is never going to happen to us – are you sure?
What is fraud? It has often been defined as anything illegal that benefits the perpetrator. If you add a little extra to your mileage claims, that’s fraud. If you help yourself to office stationery because you’re running low at home, that’s fraud. If you take credit for a design that
Business issues to address before getting back to work during the pandemic
That’s what a lot of people are looking forward to doing, as soon as the pandemic shows signs of abating. Many had hoped that with the beginning of a new year, the tedium of working from home could be traded for the tedium of leaving it for the office, but the
Risk managers and organisation should overcome the mental block of digitisation
Risk management is, to a great extent, about the psychology of managing risk. People have to accept that there is risk to begin with, then understand how to deal with it. In the process, they develop individual perspectives and approaches to risk which are further supported by organisational systems and processes.
Is the Model or Mindset more important for Enterprise Risk Management implementation success?
Implementing ERM in any organisation depends on both the model to be applied, and the mindsets of those who will be doing the implementation. ERM will challenge the organisation, but will ultimately improve its competitiveness, sustainability and growth over the long term. Organisations which intend to implement it should be prepared