Compliance, governance and risk management - Web 2.0 challenge

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http://university.commetrics.com ==> These slides outline some of the material presented at the Lorange.org business institute

What works and what fails and why do we care about governance, compliance and risk management.
How it works in practice

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Compliance, governance and risk management - Web 2.0 challenge

  1. 1. My.ComMetrics.comComMetrics Session 9: Governance, risk and compliance http://www.slideshare.net/ComMetricsUniversity Latest version can be found here just before class Presented by http://www.YouTube/ComMetrics ComMetrics – videos http://info.cytrap.eu/?p=134 social media trends 2011 http://info.cytrap.eu/?p=176 ComMetrics blog checklist Urs E. Gattiker , Ph.D. 2008_06_16
  2. 2. ComMetrics _Wrap up from last session 3 critical things learned – why changing a company logo may be for the birds 2011_01_17 _Introduction >Purpose >HowTo >Tools & Tips >Decision >Conclusions
  3. 3. ComMetrics _SM can mean that a few people can make a lot of noise – sometimes even a small group can convince management to change brand logo, etc. #1 Does logo still represent what we sell Challenge today Strategy: Adjust the logo and/or strategy PS. Sirens – the creatures in Greek mythodology who lured sailors to their death. http://www.youtube.com/watch?v=W4eWHWZ3JZY Only an MBA can come with such an idea http://www.bnet.com/blog/salesmachine/why-starbucks-new-logo-is-a-dumb-idea/13950 2011_01_18 >Introduction _Purpose >How to >Decision >Conclusions >Tools & Tips
  4. 4. ComMetrics _Starbucks logo. Solution: Starbucks revised, streamlined logo removes the outer green circle that bares the Starbucks Coffee name, enlarging the inner siren, sometimes referred to as a sea nymph, in the companys signature green hue. Read – Oct/Nov. 2010 – GAP logo change http://commetrics.com/?p=10899 2011_01_18 >Introduction _Purpose >How to >Decision >Conclusions >Tools & Tips
  5. 5. ComMetrics _Example from a client How can we make these things work 2011_01_17 _Introduction >Purpose >HowTo >Tools & Tips >Decision >Conclusions
  6. 6. ComMetrics _Restaurant - lunch hour rush #1 12:15 – everybody wants to sit = 15 minute wait Challenge & kitchen being under pressure Strategy: Getting regulars to come before or after rush hour 2011_01_18 >Introduction _Purpose >How to >Decision >Conclusions >Tools & Tips
  7. 7. ComMetrics _Restaurant lunch hour rush: Exceeding com- pliance & food/customer service standards #1 12:15 – everybody wants to sit = 15 minute wait Challenge & kitchen being under pressure Strategy: Getting regulars to come before or after rush hour Solution Seasonal ingredients, watch price – 15% discount must order < 11:30 or after 13:30 hours LA lunch truck – tweet daily special to followers See also: http://www.ft.com/cms/s/2/70fab5a8-f762-11df-8b42-00144feab49a.html 2011_01_18 >Introduction _Purpose >How to >Decision >Conclusions >Tools & Tips
  8. 8. ComMetrics _3 Why it matters – today„s 2 nuggets 1 What is compliance, governance and best practice? 2 How can one be compliant while still not follow the check-box mentality? 2011_01_18 _Introduction >Purpose >HowTo >Tools & Tips >Decision >Conclusions
  9. 9. ComMetrics _Purpose What is this all about? 2011_01_18 >Introduction _Purpose >HowTo >Tools & Tips >Decision >Conclusions
  10. 10. ComMetrics _What is governance and compliance? Definition in textbook? Does you textbook define governance, regulation & compliance? How were compliance/governance or regulation defined in other MBA courses/modules? How does governance and compliance / regulation relate to innovation? What is your company„s compliance policy? (please bring document to class) :::::::::::::::::::::::::::::::::::::: 2011_01_18 >Introduction _Purpose >HowTo >Tools & Tips >Decision >Conclusions
  11. 11. ComMetrics _What is governance and compliance? What is the governance approach your company uses... How does compliance, regulation and governance affect your company„s outsourcing relationships (e.g., suppliers, sub-contracting, etc.)? :::::::::::::::::::::::::::::::::::::: 2011_01_18 >Introduction _Purpose >HowTo >Tools & Tips >Decision >Conclusions
  12. 12. ComMetrics _What is governance and compliance? CyTRAP Labs - risk - 2011_01_18 >Introduction _Purpose >HowTo >Tools & Tips >Decision >Conclusions
  13. 13. ComMetrics _What is governance and compliance? Piracy, copyright, etc. 300, 000 applications and 50,000 book apps on Apple„s App Store. 2010-12-14 a group of 4 Japanese publishers has accused Apple of ‚illegal„ behavior for allowing pirated versions of Japanase novels to be sold on its popular App store. For instance, complete works of Haruki Muakami, the author of Norwegian Wood, The Wind-Up Bird Chronicle and other famous books is available in Chinese for $1.99 2011_01_18 >Introduction _Purpose >HowTo >Tools & Tips >Decision >Conclusions
  14. 14. ComMetrics _What is governance and compliance? Piracy, copyright, etc. Publishes complained about apps allowing users to view unauthorized scans of Japanese manga, or comics. This seems to be a scalability problem but not a willingness one on Apple„s part. „Apple is yet to clearly specify a contact point for removal requests or the procedures for removal, and even for the content that has been removed, it is unclear who removed the content and how the dtermination for removal was made,“ they said. Neither has WordPress.com a proper process: http://commetrics.com/?p=11715 2011_01_18 >Introduction _Purpose >HowTo >Tools & Tips >Decision >Conclusions
  15. 15. ComMetrics _From Purpose to HowTo How do we put this into practice? 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  16. 16. ComMetrics _Margin of Error 50 year maturity bonds as an example 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  17. 17. ComMetrics _Flawed maths a factor in financial mayhem 50 year maturity bonds serves as an example 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  18. 18. ComMetrics _Guidelines CyTRAP Finally, regarding these guidelines: “… their spirit must be observed as well as their letter.” http://info.cytrap.eu/terms-privacy/sm-policy 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  19. 19. ComMetrics _Why is governance so difficult to grasp http://www.youtube.com/watch?v=1jV0AUjx6Ik 7 min How do you get independent directors? What has it to do with better governance 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  20. 20. ComMetrics _3 assigned readings – Topic 9 - we choose a student to moderate the discussion – you can volunteer yourself for today or for tomorrow - please have your notes ready – all students - Chosen reading is: - Could your risk management approach regarding IT, data, marketing strategy, R&D fail? 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  21. 21. ComMetrics _3 assigned readings – Topic 9 - The study, presented recently at the annual meeting of the American Accounting Association, examined 296 major financial institutions around the world with assets exceeding $10 billion over the seven quarters from January 2007 through September 2008. The sample consisted of banks, brokerages, and insurance companies in 30 countries, including 125 in the U.S. and 131 in Europe. -What did make a significant difference, though, was the amount of company stock owned by institutional investors, with greater institutional ownership translating into poorer stock performance. 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  22. 22. ComMetrics _3 assigned readings – Topic 9 - “...our findings cast doubt on whether regulatory changes that increase shareholder activism and monitoring by outside directors will be effective in reducing the consequences of future economic crises.“ - Corporate insiders want to protect their jobs (hide the bad news) while “... independent directors have an incentive to avoid the reputational cost of a bankruptcy by pressuring firms to raise equity capital.” (raise equity in markets). See also: http://www.accountingtoday.com/news/Independent-Board-Members-Played-Role-Financial-Woes- 55972-1.html Your instructor has the complete research paper for you – http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1397685 2011_01_18 >Introduction >Purpose _HowTo >Tools & Tips >Decision >Conclusions
  23. 23. ComMetrics _Tools & Tips – passwords - What can we do to manage that risk.... ? - What type of risks are we talking about? 2011_01_18 >Introduction >Purpose >HowTo _Tools & Tips >Decision >Conclusions
  24. 24. ComMetrics _Tools & Tips - passwords - Risks and compliance – managing your passwords – how you can do it best? - all 3 months XYZ234_fm (password, can you remember?) - 19822003@cytrap.eu 19822003weburs@gmail.com - password: 20Cynthia03 Best, use ou team member„s tool on your PC to store your passwords: Rony Shapiro – PasswordSafe is his gift to the world it works http://passwordsafe.sourceforge.net/ 2011_01_18 >Introduction >Purpose >HowTo _Tools & Tips >Decision >Conclusions
  25. 25. ComMetrics _Decision time – enforcements, audits and fall-outs - What can an organization do? - What can the regulator do? 2011_01_18 >Introduction >Purpose >HowTo _Tools & Tips >Decision >Conclusions
  26. 26. ComMetrics _Student Case – Strategy – Distributor – Managing Data - student presents – price increases by suppliers - How does this affect your stategy 2011_01_18 >Introduction >Purpose >HowTo >Tools & Tips _Decision >Conclusions
  27. 27. ComMetrics _Student Case - student presents – class discusses 2011_01_18 >Introduction >Purpose >HowTo >Tools & Tips _Decision >Conclusions
  28. 28. ComMetrics _Innovation – do compliance and governance guide us? http://www.youtube.com/watch?v=EBnBybyr-Jw 6 min – showing compliance to the company that outsourced IT and data services into the cloud What about Apple and its election process of board members? ===>http://online.wsj.com/article/SB10001424052748704118504576034020847007238.html?mod=wsj_share_twitte r 2011_01_18 >Introduction >Purpose >HowTo >Tools & Tips _Decision >Conclusions
  29. 29. ComMetrics _HSBC ‚had Madoff warning„ The complaint alleges that: ‚The fees they received for their various roles were nothing more than kickbacks paid for looking the other way.„ 2011_01_18 >Introduction >Purpose >HowTo >Tools & Tips _Decision >Conclusions
  30. 30. ComMetrics _Compliance and enforcement Source: FT 2010-12-07, p. 17 Allegations that HSBC served as a major conduit for funding Bernard Madoff„s huge Ponzi scheme This investigation will fuel concerns about HSBC„s compliance and oversight functions. Ireland – many „feeder“ funds for Madoff, investigation ongoing for more than 1 yr. 2011_01_18 >Introduction >Purpose _How to >Decision >Conclusions >Tools & Tips
  31. 31. ComMetrics _Compliance and enforcement Source: FT 2010-12-07, p. 17 Several investor lawsuits are already pending in Ireland and France HBSC lost more than 1bn of its own money thanks to Madoff US courts an be dangerous for European banks. 1998 UBS and Credit Suisse agreed to pay 1.25bn after a deluge of negative publicity about their treatment of Holocaust survivors 2011_01_18 >Introduction >Purpose _How to >Decision >Conclusions >Tools & Tips
  32. 32. ComMetrics _Compliance and enforcement 2009-03-09 - Union Bancaire Privée (UBP), the second-biggest investor in hedge funds, on Thursday offered partial compensation to clients hit by $700m of losses from the Bernard Madoff fraud – as long as they waive the right to sue. Allegations that HSBC served as a major conduit for funding 2010-12-07- UBP agrees for a settlment of a lawsuit by mostly European clients that lost $400mio agreeing to pay up to US$500mio to Irving Picard the manager of bankruptcy proceedings for clients that lost in the Madoff ponzi scheme. 2011_01_18 >Introduction >Purpose _How to >Decision >Conclusions >Tools & Tips
  33. 33. ComMetrics _3 Why it matters – today„s 2 nuggets 1 What is compliance, governance and best practice? 2 How can one be compliant while still not follow the check-box mentality? 2011_01_18 >Introduction >Purpose >HowTo >Tools & Tips >Decision _Conclusions
  34. 34. ComMetrics _One more thing 3 most critical things we learned today 3 things I love to get more infos about 2011_01_18 >Introduction >Purpose >HowTo >Tools & Tips >Decision _Conclusions
  35. 35. My.ComMetrics.comComMetrics Session 9: Governance, risk and compliance Presented by http://My.ComMetrics.com (free registration) http://ComMetrics.com (blog) Roentgenstrasse 49 Street http://info.cytrap.eu/?p=134 social media trends 2011 CH-8005 Zuerich Zip Code Switzerland Country http://info.cytrap.eu/?p=176 ComMetrics blog checklist +41(0)44 272 1876 Voice +41(0)76 200 7778 Cell info@CyTRAP.eu Google Talk Urs E. Gattiker , Ph.D. www.ComMetrics.com URL 2008_06_16

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