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ICSA Ireland Conference 2016

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ICSA Ireland Conference 2016

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ICSA Ireland Conference 2016

  1. 1. The ICSA Ireland Conference 24 May 2016
  2. 2. Conference Chair Conor Ryan, Chair, ICSA Ireland Branch
  3. 3. To view all the slides, go to the conference webpage and click the link.
  4. 4. Follow us on: @ICSA_News Please use the hashtag #ICSAIre16
  5. 5. ICSA 125 Simon Osborne, Ireland conference, 24 May 2016
  6. 6. 125 years of leading governance ICSA125 This October we celebrate 125 years since the institute first was first formed. • 1891: the Institute of Secretaries • 1971: the Institute of Chartered Secretaries and Administrators • 2016: ICSA: The Governance Institute
  7. 7. 125 years of leading governance • Positioning ourselves for the future • ICSA: The Governance Institute • Royal Charter to lead ‘effective governance and efficient administration of commerce, industry and public affairs’
  8. 8. 125 years of leading governance Where we’re heading: • ICSA to be the provider of products and services to support the skills and knowledge of professionals working in governance and legal and regulatory compliance roles in organisations of all types and sizes and in any sector • A wider set of products and services, particularly qualifications, for people outside of the corporate market • Revision of qualifications to keep them current and in demand • Higher public profile in the media
  9. 9. 125 years of leading governance How we’re getting there: • Continued focus on raising our public profile • Increased public profile courtesy of the Policy team, ie Code of Governance for CCGs, blogs, technical briefings, articles, speaking at events and responding to consultations • Positioning ICSA as a thought leader in national and regional media • Governance and Compliance magazine • Research projects • www.icsa.org.uk
  10. 10. 125 years of leading governance Encouraging the future faces of governance: • One to Watch, ICSA Awards • Tom Morrison Essay Prize – the Keating twins!
  11. 11. 125 years of leading governance Governance professionals are right at the heart of things, promoting accountability, transparency, integrity and stewardship to ensure that organisations operate in a manner which is most productive. ‘Governance focus has increased, the company secretary’s role has increased, [there is] more work to do, and that work is more visible.’ (The Company Secretary: Building trust through governance, Henley Business School) The study, development and practice of governance are here to stay. ICSA: The Governance Institute has a bright future ahead of it!
  12. 12. Keynote address PJ Timmins, Director, The Alternative Board and former CEO, Clerys plc
  13. 13. Cyber security: What does it mean for your business? ICSA Conference 2016 Jared Carstensen 24th May 2016
  14. 14. About me….. A|14 Jared Carstensen | 24th May 2016
  15. 15. My Journey…. Every kid dreams of their perfect job Baby Firefighter Policeman Leader / Politician CISO 15 | Jared Carstensen | 24th May 2016
  16. 16. Perception vs Reality Before & After Before Breach 16 | Jared Carstensen | 24th May 2016 During & Post Breach
  17. 17. Bringing the ease of an attack home….. B|17 Jared Carstensen | 24th May 2016
  18. 18. Information Security – People, Processes & Technology Each of us is only ever one click away! How easy is it? An example scenario of what could happen! 18 | Jared Carstensen | 24th May 2016
  19. 19. Context C|19 Jared Carstensen | 24th May 2016
  20. 20. The Threat Landscape Criminals, Hacktivists, Insiders, Nation States 20 | Jared Carstensen | 24th May 2016 This is Real – if you use the internet or send email, you are a target…. ▪ Affecting every single person & business (viruses, malware, cybercrime etc.) ▪ World Economic Forum highlights risk of cyber attack among its highest global risks ▪ Over 90% large corporates (globally) have experienced incidents & attacks ▪ Top 5 priority for CEO’s – FTSE 100 & FTSE 250 – Wall Street Journal ▪ Breaches impact negatively on share price, consumer, people & partner confidence ▪ Cyber crime makes more money than the narcotics / drugs trade and is a truly international ‘borderless’ crime
  21. 21. Danger Signs D|21 Jared Carstensen | 24th May 2016
  22. 22. Danger Signs for Security Common mistakes that lead to failed programmes 10 | Jared Carstensen | 24th May2016 Ineffective security programmes / departments do the following: Χ “Why would anyone want to hack us” mind-set. Χ Treat all information and systems the same. Χ Use ‘No’ often to block projects or initiatives. Χ Apply checklist based security! Χ Drive policies as the primary way to change behaviours. Χ Try to fix all security risks with technologies and products. Χ No metrics or reporting to Audit Committee / Board. Χ Treat security as a technical area that is looked after by the IT department. Χ Inability to communicate in simple and concise business terms.
  23. 23. Ensure the following…. E|11 Jared Carstensen | 24th May 2016
  24. 24. Effective Security Beats ‘Good’ or CompliantSecurity Focus on the small steps to yield big changes 12 | Jared Carstensen | 24th May2016 Effective security programmes / departments do the following:  Endorsement, mandate and comment of support from highest member of company.  Prioritised and categorised list of critical services, functions and systems.  Embrace organisational culture and promote positive behaviours.  Make the message stick and memorable – people first / focussed approach! Ongoing reporting to Management, Audit Committee and Board. Which projects have been seen as a success, why they succeeded & replicate those.  Focus on capability and enhancing maturity as opposed to purely controls based security.  The best form of security is the one this is invisible to the user and has various layers.  Consistently enhance practices to help prepare for incident response / breach activities.
  25. 25. Final Thoughts…. F|25 Jared Carstensen | 24th May 2016
  26. 26. Cyber Sales / Scaremongering – it has got to stop! Call for calm, actionable and measured steps 26 | Jared Carstensen | 24th May2016
  27. 27. Car Accidents vs Cyber Breaches! Are there similarities / comparisons? 27 | Jared Carstensen | 24th May2016 • Rules of road to protect drivers and pedestrians • Regulations and standards to protect businesses and consumers • Speed limits depending on the type of road • Regulations depending on the type of industry and sector • Wide choice of cars available depending on your needs • Wide choice of solutions and providers depending on your requirements • By not adhering to rules and laws of the road, you put your own and others’ lives at risk • By not adhering to security rules, standards, frameworks and best practice, thousands of incidents are happening every day putting your organization and it’s customers at risk • Despite all road safety guidelines, laws and awareness there are countless road accidents and fatalities every day • Despite all the standards, guidance, frameworks, regulations and more solutions and services than ever before; countless incidents, breaches and non-compliance continue Is your organization driving recklessly, or are they simply asleep at the wheel?
  28. 28. Thank you 28 | Jared Carstensen | 24th May2016 Jared Carstensen Chief Information Security Officer
  29. 29. Tea and Coffee
  30. 30. 30 Managing Risk and Reputation Niamh Boyle, Managing Director, The Reputations Agency 24th May 2016, ICSA Annual Conference
  31. 31. About The Reputations Agency 31 The Reputations Agency is a full service Consumer Brand, Corporate PR and Reputation Management agency and part of Ireland’s biggest ideas company, the ddfh&b Group and the global JWT network. Across our three divisions we tell brand stories and manage the reputations of some of the world’s biggest brands. Using global and local insights which shape and inform our thinking, we deliver smart strategies and great ideas with a single minded focus - getting your brands and companies talked about. We are the leading experts in reputation management in Ireland, and exclusive partners of the global Reputation Institute, with our Ireland RepTrak® Report a calendar feature for the CEOs of many of Ireland’s best known organisations. Our TRA Brands team builds campaigns from the ground up in partnership with some of the top marketers in the country. We are a key part of the inter-agency planning process with some of the most experienced brand experts and freshest thinkers in the country. Our Corporate and Financial team are PR experts with strategic marketing, financial, legal and reputation management capability who act as trusted advisors to leading Irish businesses. We offer analysis, strategy, media relations and expert counsel to build profiles and engage stakeholders while also providing issues and crisis management support when organisations need it most.
  32. 32. About the Reputation Institute • Reputation Institute is the world’s leading reputation management consultancy, founded in 1997. • Its Global RepTrak® Pulse study is the world's largest reputation study, measuring more than 2,000 companies from 25 industries across 40 countries. • The study provides key insights into what drives perceptions and how they influence marketplace behaviour, and powerful global benchmarking. • RepTrak® also serves as the basis for continued thought leadership in the reputation management field. • RI’s Reputation Leaders Network is the premier network of senior executives from more than 100 global member companies who work together to advance the practice of corporate reputation management collectively and for their organisations. United Arab Emirates c Canada United States Colombia Chile Brazil South Africa Australia Malaysia India Japan China Portugal Spain Russia Turkey Ukraine Germany Norway Greece Ireland United Kingdom France Switzerland Denmark Netherlands Sweden Italy Mexico Panama Puerto Rico Perú Argentina Knowledge Publication Conferences Training Research Information Analysis Presentation Advice Insight Strategy Activation
  33. 33. Why should we care about reputation? *
  34. 34. Direct experience What a company communicates What others say Touch Points Reputation Behaviour Business Results A strong reputation increases supportive behaviours and delivers positive business results
  35. 35. Regulators Media &Social Media General Public Employees Customers Key Opinion Leaders Support/ Refer Work For/Recommend Necessary to understand your stakeholders, and how to influence them across communications touch- points, in order to drive/shape the perceptions that support your company’s results Why should we care about reputation?
  36. 36. Note: The RepTrak® Index was calculated from the daily stock market values of the 10 most reputed companies with a RepTrak® Pulse score above 70 in the UK RepTrak® Pulse rankings and adjusted each year in January. The values of the RepTrak® Index and FTSE100 Index shown are percentage changes from January 1, 2009. Ten most highly reputed companies outperform FTSE100 Index 2009–2015 Analysis of the share price of the most highly reputed companies shows that they consistently outperform the market – in the U.S., FTSE, CAC and Nordic countries. Why should we care about reputation?
  37. 37. …and there’s much more at stake! 17% 32% 68% 80% 81% 83% 68% 32% 20% 19% 0% 20% 40% 60% 80% 100% 1975 1985 1995 2005 2009 Components of S&P 500 Market Value Intangible Assets Tangible Assets
  38. 38. * Who you are as a Company matters more than what you Sell Product Enterprise 38% 72% The companies that are investing here are capturing competitive advantage
  39. 39. Would buy the products 6% Would recommend the products Would work for Would welcome into local community 14% 34% 56% 86% 4% 9% 26% 53% 86% 5% 11% 28% 54% 84% 7% 16% 35% 59% 86% 0-39 40-59 60-69 70-79 80+ RepTrak® Pulse Score POOR <40 AVERAGE 60-69 STRONG 70-79 WEAK 40-59 EXCELLENT >80 * A Strong Reputation Reduces the Transaction Cost of doing Business
  40. 40. * How do we know what external audiences believe about us? Why do you love me? Do you love me? What are the practical consequences? Defines what drives corporate reputations Direct measurement of corporate reputation (as a proxy for trust) Defines the consequences of corporate reputations in terms of intended behaviour Dimensions Reputation Behaviour
  41. 41. 55.00 60.00 65.00 70.00 75.00 80.00 85.00 Y 2010 Y 2011 Y 2012 Y 2013 Y 2014 REPUTATION DEVELOPMENTS THE COCA-COLA COMPANY United States of America Australia China Spain • RepTrak® enables a firm to see in time negative trends in public opinion, regarding key issues like for example OBESITY • Coca-Cola, just like McDonalds, could have seen the gradual decrease in the perceptions of the company that appeared to be linked to growing worries among external audiences regarding healthy food. RepTrak® works as an Early Warning System
  42. 42. • The company does well as a brand as it is in the Top 3 of Interbrand’s Global Ranking • However, its reputation is substantially lower and decreasing: – Global RepTrak® 2016 - The Coca-Cola company ranks #83 – Global RepTrak® 2015: Rank #67 – Global RepTrak® 2014: Rank #52 – Ireland RepTrak 2016 ® - Rank #68 • As a consequence performance decreases
  43. 43. 74.58 78.55 RepTrak® Score Globally All Global Pulse scores that differ by more than +/-0.9 are significantly different at the 95% confidence level. Pulse scores are based on questions measuring Trust, Admiration & Respect, Good Feeling and Overall Esteem (captured in the RepTrak® Pulse score on a 0-100 scale). 78.98 85.41 79.19 83.19 83.34 84.77 78.95 79.29 76.64 88.33 76.19 75.19 69.80 71.26 POOR <40 AVERAGE 60-69 EXCELLENT >80 STRONG 70-79 WEAK 40-59 BMW Group – Reputation profile across 15 markets
  44. 44. Ireland RepTrak ® 2016 – Reputations of the largest & most visible companies in Ireland
  45. 45. Ireland RepTrak® 2016 – Reputations of the largest & most visible companies in Ireland
  46. 46. RepTrak® Pulse Ireland 2016 79,6 78,4 77,3 76,4 76,1 75,9 75,9 75,4 75,2 75,1 74,8 74,4 74,2 73,8 73,7 73,0 72,9 72,6 72,4 72,0 71,8 71,7 71,3 71,1 71,0 70,9 70,7 70,5 69,1 68,4 68,1 68,0 68,0 67,7 67,3 67,1 66,6 66,6 66,5 66,4 65,7 65,0 64,2 63,9 63,9 63,6 63,5 63,1 63,1 63,1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ BordBía Eason&Son AnPost Google Lidl CreditUnions AldiStores BMW Ford Boots SuperValu Intel Toyota Kellogg's Glanbia Cadbury ourismIreland AerLingus SmythsToys KerryGroup Applegreen Microsoft IRFU homasGroup Spar ydsPharmacy ewlett-Packard pencerGroup heIrishTimes ttLaboratories Heineken Coillte Arnotts Aviva ESB Primark BordnaMóna Nissan Apple IBM IrishDistillers Dell yaHealthcare VirginMedia Allianz Three unnesStores dGáisEnergy GAA News&Media 0 10 20 30 40 50 60 70 80 90 100 Excellent/Top tier 80+ Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Low est tier <40 Ireland RepTrak® 2016 28 companies in the Strong tier 41 companies in the Average tier
  47. 47. 41 companies in the Average tier 30 companies in the Weak tier One company in the Poor tier in 2015 RepTrak® Pulse Ireland 2016 62,9 62,8 62,6 62,5 62,5 62,4 62,2 62,0 62,0 61,8 61,6 61,4 61,2 61,1 61,0 60,7 60,6 60,2 60,0 59,9 59,5 59,2 59,0 59,0 58,9 58,6 58,5 58,5 58,5 58,4 58,1 58,0 58,0 57,8 57,6 56,9 56,0 55,4 54,2 54,1 53,3 52,3 51,6 48,9 47,7 46,9 46,8 46,2 44,7 14,3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Centra Pfizer LifeAssurance Vodafone eann-IrishBus DAA IrishLife arnrodÉireann Volkswagen Sky Axa Tesco Ryanair GSK Diageo RTÉ KBCBank ColaCompany usÁthaCliath PwC FBD VhiHealthcare EY Maxol FriendsFirst RSA TV3 ertyInsurance KPMG EnergyGroup ationalLottery facebook SSEAirtricity Deloitte Renault PepsiCo Permanenttsb Meteor CIÉ PaddyPower UlsterBank BTIreland EBS Ladbrokes FAI McDonald's BankofIreland AIB eir IrishWater 0 10 20 30 40 50 60 70 80 90 100 Excellent/Top tier 80+ Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Lowest tier <40 Ireland RepTrak® Pulse 2016
  48. 48. Ireland RepTrak® Pulse 2016 – Ranked 75-51 2015 2016 51 Centra 67,4 62,9 -4,5 52 Pfizer 68,5 62,8 -5,7 53 Zurich Insurance 67,1 62,6 -4,5 54 Vodafone 56,7 62,5 5,9 55 Bus Éireann- Irish Bus 67,2 62,5 -4,7 56 DAA 64,0 62,4 57 Irish Life 61,2 62,2 58 Iarnrod Éireann 58,1 62,0 3,9 59 Volkswagen 77,9 62,0 -15,9 60 Sky 62,8 61,8 61 Axa 63,0 61,6 62 Tesco 60,2 61,4 63 Ryanair 54,1 61,2 7,1 64 GSK 67,3 61,1 -6,2 65 Diageo 64,7 61,0 -3,7 66 RTÉ 65,0 60,7 -4,4 67 KBC Bank 60,8 60,6 68 The Coca-Cola Company 61,8 60,2 69 Dublin Bus - Bus Átha Cliath 53,2 60,0 6,8 70 PwC 56,8 59,9 3,1 71 FBD 61,9 59,5 72 Vhi Healthcare 56,0 59,2 3,1 73 EY - 59,0 74 Maxol 59,7 59,0 75 Friends First 59,2 58,9 n = 3.612 3.601 2015- 2016 Excellent/Top tier 80+ Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Low est tier <40
  49. 49. Ireland RepTrak® Pulse 2016 – Ranked 50-26 Excellent/Top tier 80+ Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Low est tier <40 Ireland [sorted by 2016] 2015 2016 2015 2016 26 LloydsPharmacy - 70,9 51 Centra 67,4 62,9 -4,5 27 Hewlett-Packard 69,4 70,7 52 Pfizer 68,5 62,8 -5,7 28 Marks & Spencer Group 72,5 70,5 53 Zurich Insurance 67,1 62,6 -4,5 29 The Irish Times 67,1 69,1 54 Vodafone 56,7 62,5 5,9 30 Abbott Laboratories 67,8 68,4 55 Bus Éireann- Irish Bus 67,2 62,5 -4,7 31 Heineken 67,7 68,1 56 DAA 64,0 62,4 32 Coillte 65,9 68,0 57 Irish Life 61,2 62,2 33 Arnotts 74,5 68,0 -6,5 58 Iarnrod Éireann 58,1 62,0 3,9 34 Aviva 64,2 67,7 3,6 59 Volkswagen 77,9 62,0 -15, 35 ESB 63,7 67,3 3,6 60 Sky 62,8 61,8 36 Primark 73,4 67,1 -6,3 61 Axa 63,0 61,6 37 Bord na Móna 65,6 66,6 62 Tesco 60,2 61,4 38 Nissan 74,2 66,6 -7,7 63 Ryanair 54,1 61,2 7,1 39 Apple 71,1 66,5 -4,6 64 GSK 67,3 61,1 -6,2 40 IBM 71,6 66,4 -5,1 65 Diageo 64,7 61,0 -3,7 41 Irish Distillers 63,4 65,7 66 RTÉ 65,0 60,7 -4,4 42 Dell 70,9 65,0 -5,9 67 KBC Bank 60,8 60,6 43 Laya Healthcare 61,8 64,2 68 The Coca-Cola Company 61,8 60,2 44 Virgin Media 51,3 63,9 12,5 69 Dublin Bus - Bus Átha Cliath 53,2 60,0 6,8 45 Allianz 64,5 63,9 70 PwC 56,8 59,9 3,1 46 Three 57,2 63,6 6,4 71 FBD 61,9 59,5 47 Dunnes Stores 64,6 63,5 72 Vhi Healthcare 56,0 59,2 3,1 48 Bord Gáis Energy 59,2 63,1 3,9 73 EY - 59,0 49 GAA 71,9 63,1 -8,8 74 Maxol 59,7 59,0 50 Independent News & Media 53,4 63,1 9,7 75 Friends First 59,2 58,9 n = 3.211 3.619 n = 3.612 3.601 RepTrak® Pulse development 2015- 2016 2015 201
  50. 50. Ireland RepTrak® Pulse 2016 – Ranked 25-11 Excellent/Top tier 80+ Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Low est tier <40 5 Lidl 72,9 76,1 3,2 6 The Irish League of Credit Unions 77,6 75,9 Lowest score 2016 7 Aldi Stores 72,9 75,9 Irish Water 8 BMW 71,8 75,4 3,6 9 Ford 72,7 75,2 10 Boots 81,6 75,1 -6,5 11 SuperValu 71,4 74,8 3,4 Biggest climb 2016 12 Intel 74,9 74,4 Virgin Media 13 Toyota 76,3 74,2 14 Kellogg's 81,0 73,8 -7,2 15 Glanbia 70,5 73,7 3,2 16 Cadbury 73,5 73,0 Biggest fall 2016 -15,9 17 Tourism Ireland 73,8 72,9 Volkswagen 18 Aer Lingus 74,9 72,6 19 Smyths Toys 75,5 72,4 20 Kerry Group 70,4 72,0 21 Applegreen - 71,8 22 Microsoft 74,7 71,7 23 IRFU 77,6 71,3 -6,2 24 Brown Thomas Group 71,3 71,1 25 Spar 66,4 71,0 4,6 n = 3.015 3.702 14,3 12,5 Ireland [sorted by 2016] 2015 2016 1 Bord Bía 79,8 79,6 Highest score 2016 2 Eason & Son 72,8 78,4 5,6 Bord Bía 3 An Post 75,3 77,3 4 Google 84,4 76,4 -8,0 5 Lidl 72,9 76,1 3,2 6 The Irish League of Credit Unions 77,6 75,9 Lowest score 2016 7 Aldi Stores 72,9 75,9 Irish Water 8 BMW 71,8 75,4 3,6 9 Ford 72,7 75,2 10 Boots 81,6 75,1 -6,5 11 SuperValu 71,4 74,8 3,4 Biggest climb 2016 12 Intel 74,9 74,4 Virgin Media 13 Toyota 76,3 74,2 14 Kellogg's 81,0 73,8 -7,2 15 Glanbia 70,5 73,7 3,2 16 Cadbury 73,5 73,0 Biggest fall 2016 -15,9 17 Tourism Ireland 73,8 72,9 Volkswagen 18 Aer Lingus 74,9 72,6 19 Smyths Toys 75,5 72,4 RepTrak® Pulse development 79,6 14,3 12,5 2015- 2016
  51. 51. Ireland RepTrak® Pulse 2016 – Ranked 10-1 Excellent/Top tier 80+ Strong/Robust 70-79 Average/Moderate 60-69 Weak/Vulnerable 40-59 Poor/Low est tier <40 Ireland [sorted by 2016] 2015 2016 1 Bord Bía 79,8 79,6 Highest score 2016 2 Eason & Son 72,8 78,4 5,6 Bord Bía 3 An Post 75,3 77,3 4 Google 84,4 76,4 -8,0 5 Lidl 72,9 76,1 3,2 6 The Irish League of Credit Unions 77,6 75,9 Lowest score 2016 7 Aldi Stores 72,9 75,9 Irish Water 8 BMW 71,8 75,4 3,6 9 Ford 72,7 75,2 10 Boots 81,6 75,1 -6,5 11 SuperValu 71,4 74,8 3,4 Biggest climb 2016 12 Intel 74,9 74,4 Virgin Media 13 Toyota 76,3 74,2 RepTrak® Pulse development 79,6 14,3 12,5 2015- 2016
  52. 52. 52 Ireland RepTrak® 2016 - Industry ranking Ireland Average Pulse 63.6 Food - Manufacturing (4) n = 401 Retail - General (11) n = 1.701 Computer (6) n = 606 Automotive (6) n = 603 Public Services (5) n = 602 Pharmaceuticals (5) n = 502 Information & Media (6) n = 707 Energy (7) n = 1.406 Retail - Food (5) n = 899 Transport & Logistics (5) n = 799 Beverage (5) n = 1.000 Financial - Insurance (11) n = 1.099 Services (6) n = 1.102 Telecommunications (7) n = 604 Financial - Bank (7) n = 1.699 Total n= 13.732 Ireland Industry rank 73.1 69.1 64.8 63.9 63.4 62.4 58.7 55.8 71.7 68.5 64.1 63.5 63.2 61.5 57.1 63.2 73.1 71.7 69.1 68.5 64.8 64.1 63.9 63.5 63.4 62.4 61.5 58.7 57.1 55.8 0 20 40 60 80 100
  53. 53. Reputational Risk Management
  54. 54. 54 1978 1984 2001 The topic is not at all new…
  55. 55. 55 20101989 …and the Energy/Petrochemical industry has seen some major incidents
  56. 56. 56 The difference between then and now is extremely different – Impacts today are immediate and global… TodayYesterday
  57. 57. 57 For BP, the Deep Water Horizon incident had a devastating impact on their reputation – and consequently their financial performance
  58. 58. HOW VW LOST THE PUBLIC’S TRUST September 2015 - US EPA announced Volkswagen had been installing sophisticated software to cheat diesel emission tests - Volkswagen’s cars were environmentally friendly no more. The general public’s trust in the automaker was highly damaged in the US as well as globally. Country Q1 RepTrak® Pulse Q4 RepTrak® Pulse Δ RepTrak® Pulse UK 82.7 52.8 -29.9 SPAIN 74.8 47.1 -27.7 ITALY 77.9 52.2 -25.7 FRANCE 76.1 51.3 -24.8 GERMANY 80.6 57.1 -23.5 US 69.7 61.0 -8.7 VW RepTrak® Pulse in Germany and VOW.DE Stock Price: Q1 2015 through January 2016
  59. 59. 59 Crisis hits your reputation harder if your reputation is already weak. Be aware of industry belonging! RepTrak® Pulse Score 40-59 70-7960-69 Reputation Loss post a negative event - 15 - 11 - 6 CRISIS AND REPUTATION Industry Reputation Loss post a negative event - 23 - 8 - 6 CRISIS AND INDUSTRY Banking Consumer Goods Pharma 1 2 3 4
  60. 60. 60 Reputation risk and how to manage it …That impacts stakeholders’ perception and behaviour… A reputation risk is a potential negative event… What it is …and ultimately impacts on business results
  61. 61. 61 Exercise Take two minutes to jot down the reputational risks to your business List the top five....
  62. 62. 62
  63. 63. 63
  64. 64. 64 Managing reputation risk
  65. 65. 65 Perception - 13,3 - 25,7 Max loss on reputation score in case of risk 1 2 3 4 What is more at stake in case of risks?
  66. 66. 66 1 Accounting malpractices 2 Bankruptcy fraud 3 CEO resignation after a financial scandal 4 Child labor in a supplier's factory 5 Delayed reporting of defects 6 Fraud and abuse allegations 7 Homophobic comments of top management 8 Incoherent communication of corporate strategy 9 Labor strike in emerging market 10 Mandatory product recall 11 NGOs very critical against a plant 12 Price increase 13 Product fraud 14 Bribery of Public officials 15 Repeated product recalls 16 Service changes and interruption 17 Sexual harassment 18 Strong layoffs 19 Unaware utilization of toxic packaging 20 Wage Renegotiation The top 20 reputation risks Every company needs to monitor How many of you are monitoring these risks?
  67. 67. 67 The process that tracks PROGRESS and input to the organisation over time The factor that describes how likely it is that the RISK will materialize and how it will impact stakeholder perceptions & support 3. Monitoring1. Impact 2. Readiness The factor that defines how PREPARED the company is to identify, mitigate and respond to a crisis M I T I G A T I O N Reputational Risk – Three key variables need management
  68. 68. 68Risk Register Template - Risk Register No. Description of Risk Area/Division Risk Type Impact Likelihood Control rating Risk Score Planned Response Mitigation/controls Risk Owner Summary of Risks: X = Low Y = Medium Z = High 1 = minor 2 = significant 3 = v significant 1 = may occur 2 = likely 3 = very likely 1 = fully under control 2 = somewhat controlled 3 = poor/inability to control 1 -4 = Low 5-11 = Medium 12-27 = High red alert
  69. 69. 69 Risk Readiness - five steps 1.…identify reputation risks 2.…predict potential damage 3.…responsibility is clear 4.…crisis management plans are well defined 5.…reputation embedded in company culture
  70. 70. 70 Niamh Boyle, Managing Director Office: +353 1 661 8915 niamh@thereputationsagency.ie www.thereputationsagency.ie The Reputations Agency, 25 Merrion Square, Dublin 2
  71. 71. Dennis Tourish Professor of Leadership Royal Holloway, University of London Co-editor of ‘Leadership’ Email: Dennis.Tourish@rhul.ac.uk DYSFUNCTIONAL LEADERSHIP IN CORPORATIONS Ken Lay AKA ‘Kenny Boy’ Jeffrey Skilling
  72. 72. Amazon May 2016- 163253 books with ‘Leadership’ in their title. If you read one every day including weekends it would take you 447 years…. BUT – there are only 346 books with ‘Followership’ in their title We have a fixation on leadership, though without followers there are no leaders…
  73. 73. SOME ASSUMPTIONS • Followers should conform – mostly, do what they are told • Leaders know best (but do they always?) • Dissent is resistance to be overcome Who’s the boss BBC 2 March 2016
  74. 74. INVOLVEMENT… AND POWER
  75. 75. INVOLVEMENT… AND POWER
  76. 76. A MAJOR SOURCE OF ERROR??? ‘The temptation to tell a Chief in a great position the things he most likes to hear is one of the commonest explanations of mistaken policy. Thus the outlook of the leader on whose decision fateful events depend is usually far more sanguine than the brutal facts admit.’ Winston Churchill (1931) INGRATIATION...
  77. 77. ‘A lot of times in politics you have people look you in the eye and tell you what's not on their mind.’ -- George W. Bush, Sochi, Russia, April 6, 2008
  78. 78. EFFECTS OF FLATTERY • A study of 451 CEOs looked at the impact on them of more intense and frequent flattery (e.g., offering exaggerated compliments) and opinion conformity (e.g., expression of agreement even when people don't agree). • Flattery and opinion conformity linked to CEOs having more favourable evaluations of their own strategic judgments and leadership skills, being less likely to make strategic changes when firm performance suffered, and more prone to lead firms that suffered persistently poor performance. Hyuan Park, Westphal and Stern, ASQ, 2011
  79. 79. EFFECTS OF NARCISSISM • Highly narcissistic CEOs less responsive to whether recent firm performance was good or bad - continued to make equally risky investments (e.g. acquisitions of new companies) regardless of recent performance. Their less narcissistic peers more cautious in bad times and tended to take bigger risks during good times. Chatterjee and Hambrick, ASQ, 2011
  80. 80. EFFECTS OF NARCISSISM • Less narcissistic CEO's weren’t affected much by media praise. The highly narcissistic made riskier investments after getting praised in the media. The narcissists were swayed more by "social praise" and less by recent performance! • ‘The only benefit of flattery is that by hearing what we are not, we may be instructed what we ought to be.’ Jonathan Swift
  81. 81. IRRATIONAL BIAS– ILLUSORY SUPERIORITY • 69% of drivers consciously worry about being killed when driving • Only 1% believe they drive worse than average • 98% think they are safer than, or as safe, as the average driver. Brake (Road Safety Charity) Survey of 800 UK adults, March 2011
  82. 82. ‘Have you ever noticed that anybody driving slower than you is an idiot, and anyone going faster than you is a maniac?’ George Carlin
  83. 83. PROBLEMS WITH FEEDBACK People are especially sensitive to negative input – the ‘automatic vigilance effect’
  84. 84. HOW WE TREAT CRITICAL FEEDBACK • Subjecting critical feedback to criticism/ accepting positive feedback • ‘I DON’T BELIEVE IT’ • Deny failure
  85. 85. WHAT CAN BE DONE? • Seek out formal and informal contact with people as often as possible
  86. 86. WHAT CAN BE DONE?• Scrutinise positive feedback more rigorously than negative feedback • Institutionalise dissent into the decision-making process – e.g. promote/ cherish/ reward contrarians • Create a culture that confronts ‘the brutal facts of reality’ – i.e. where the truth is heard
  87. 87. A CLIMATE WHERE THE TRUTH IS HEARD Lead with questions, not answers Practice saying: • ‘I don’t know’ • ‘What do you think?’ • ‘Where have we gone wrong?’ • ‘What could we do better?’
  88. 88. A CLIMATE WHERE THE TRUTH IS HEARD Engage in debate, not coercion • Have chaotic meetings • Loud debate • Heated discussions • Healthy conflict Dennis.Tourish@rhul.ac.uk
  89. 89. Career development for company secretaries Valerie Teller, Switched On Coaching With Conor Ryan FCIS, President, ICSA Ireland
  90. 90. Outline for this session 1. What are your long-term career aspirations? 2. How do you raise your profile?
  91. 91. 1 | What are your long-term career aspirations? • What do you really want? • What is important to you? • When you are 95, what will you want to say about your life?
  92. 92. 2 | How do you raise your profile? From their perspective… • When it comes to your career, who are your stakeholders? • What’s important to them? • How can/do you make their jobs easier? From your perspective… • What is it that you see/know about your organisation that others don’t? • What is important about what you do? • How does the co sec function add value to your organisation?
  93. 93. 2 | How do you raise your profile? A few tips • Create opportunities by creating connections • Stretch your comfort zone – it’s like a muscle • Get support
  94. 94. 2 | How do you raise your profile? BE CURIOUS
  95. 95. Career development for company secretaries What will you take away from today’s session?
  96. 96. Thank you
  97. 97. Risk Culture and Risk Culture Inspections ICSA Conference 2016 24th May 2016 Mark Burke Chief Risk & Compliance Officer, Mediolanum Ireland
  98. 98. 10 Agenda Background & Context What do regulatory authorities mean by culture? Drivers of Culture in a firm Conclusion Indicators of a sound risk culture
  99. 99. What has brought about this focus on culture? 108 How to safeguard rather that inadvertently profit from these? Prevailing view that weakness in culture at the heart of the financial crisis Is point-of-sale material there to protect the company or inform the customer?
  100. 100. 10 Agenda What do regulatory authorities mean by culture? Background & Context Drivers of Culture in a firm Conclusion Indicators of a sound risk culture
  101. 101. 11 What do regulatory authorities mean by culture? Culture is like DNA: it shapes judgements, ethics and behaviours that matter to the reputation and performance of the business It shapes the service provided to customers and clients An effective culture is one that supports: • the fair treatment of customers, and • Promotes sound risk taking and risk aware decisions throughout the business Examine culture though the lens of doing the right thing Ownership and responsibility for ensuring risk aware and client focussed outcomes rests with each and every employee and should not be seen as something that can be delegated to the risk & compliance functions
  102. 102. 11 Agenda Drivers of Culture in a firm What do regulatory authorities mean by culture? Background & Context Conclusion Indicators of a sound risk culture
  103. 103. 11 Drivers of Culture at a firm Examine culture through the lens of doing the right thing whether from a risk or conduct perspective - Strong Corporate Governance - Setting the tone from the top - Translating this into easily understood business practices through values such as accountability and ensuring effective communication and challenge - Supporting the right behaviours through performance management, employee development and reinforcing these through reward programmes The responsibility for ensuring the right outcomes resides with everyone at the firm, led by senior management, and not something delegated to compliance or control functions
  104. 104. 11 Agenda Indicators of a sound risk culture What do regulatory authorities mean by culture? Drivers of Culture in a firm Conclusion Background & Context
  105. 105. • Succession planning processes for key positions • Focus on financial and non-financial incentives • Job rotation between control functions and business lines Incentives and Behaviours Tone from the Top Accountability Effective Communication & Challenge • Board Ownership of Strategy • Alignment of Strategy with Core Values • Leading by example • Learning from mistakes • Ownership by the front line • Common understanding and awareness at all levels • Clear escalation processes to support risk management • Consequences are clearly established • Established mechanisms to facilitate communication and • Bring alternate views to the decision making process • Risk function seen as a genuine business partner • Ongoing training on the institution’s desired behaviours Indicators of a sound risk culture
  106. 106. 11 Agenda Conclusion What do regulatory authorities mean by culture? Drivers of Culture in a firm Background & Context Indicators of a sound risk culture
  107. 107. 11 Key Takeaways • Greater awareness of the importance of culture in driving key behaviours in firms • Having a framework to demonstrate the various mechanisms in place to • Monitor, • Shape, and • Influence the culture within the firm over time… to deliver risk aware decision making and good consumer outcomes.
  108. 108. Sports governance Jim Boyce, former Vice President, FIFA
  109. 109. ODCE and the Companies Act One Year on Kevin Prendergast Head of Enforcement, ODCE
  110. 110. ODCE Impacts  In insolvency  Offering restriction undertakings to remove the need for High Court proceedings  Power to wind up companies in public interest – none to date  In examinership  ODCE must get copy of report to the Court – small number to date
  111. 111. ODCE Impacts  In enforcement  Auditors must report offence of financial statements failing to give a true and fair view – no reports to date – preparing guidance for auditors  Directors’ loans can be validated by new Summary Approvals Procedure – have found one example of this being undertaken
  112. 112. Other judicial developments  Significant Court of Appeal judgement  DCE v Walsh & Ors, disqualification action by the Office under what was s160(2)(h) CA 1990, now s842(h) CA 2014, company struck off with debts owing  High Court declined to disqualify on basis of general economic downturn, lack of qualifications of directors, scale of enterprise, past behaviour  Court of Appeal judgement in January 2016
  113. 113. Other judicial developments  Key aspects of judgement  “Financial maelstrom” does not change nature of the law  Scale of enterprise and qualifications of directors are irrelevant  Other past behaviour irrelevant  Passive directors cannot be exonerated on that basis, all director expected to take steps to secure compliance
  114. 114. Thank You Further Information is available from www. odce. ie
  115. 115. Panel discussion: The Companies Act – one year on Conor Sweeney, CLS Chartered Secretaries Maureen O’Sullivan, Registrar of Companies Kevin Prendergast, ODCE Ruairi Cosgrove, PwC Sal Nash, KPMG

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