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Presentation Ruby Yadav - ANZ

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Presentation Ruby Yadav - ANZ

  1. 1. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013June 2013 Gaining value from risk management discipline A fresh perspective on risk management ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management
  2. 2. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 Executive Summary Gaining value from risk management discipline Why risk management fails? What are the pitfalls? How did we get there? “For all the rhetoric about its importance and the money invested in it, risk management is too often treated as a process compliance issue” – Harvard Business School 1 2 3
  3. 3. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 Why Risk Management Fails? 1 Why 2 What 3 How Locked in business heads Only captures the process oriented risks “Fear of Red” Loses relevance if identification and assessment are diluted Siloed lines of defence
  4. 4. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 1 Why What are the pitfalls? Tailor your approach • One size fits does not fit all – Not even for risk management – Tailor your approach • Processes and controls are not the only answer – There is no silver bullet for managing risk Avoid the function and aggregation traps • Functional silos distract from the value chains of the business – Think about risks from a business objective perspective • Aggregation can lose the essence of the risk – Keep enough specificity to address key risks Manage your risks – Don’t just record and report them • Organisations often get complacent when they see risks on heat maps - It’s the start of your risk management journey not the end Focus on outcomes not just processes • No one has enough resources to do it all – Focus your efforts and resources on managing key risks It’s a tight rope walk – Don’t lose your balance • It’s easier to be the deal negotiator than being the deal questioner – As embedded risk professionals you’ve got to be both “You don’t kill a fly with a sword and don’t fight wars with needles.” 2 What 3 How
  5. 5. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 How did we get there? A fresh perspective ‘Tailored Approach’ 3 How 2 What 1 Why
  6. 6. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 How did we get there? 1. Operational Risks Objective: Avoid likelihood Approach: Rules • Bottom up risk management • Repeatable operations • Processes & controls • Automation/ systems Role: Advisor, reviewer, Independent Oversight (integrated assurance) Techniques: Process & Control mapping, reviews “Sound processes and controls are at the heart of building a robust risk culture across the board.” 3 How 2 What 1 Why
  7. 7. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 How did we get there? “Strategy Risk Management – A stitch in time.” 1. Operational Risks Objective: Avoid likelihood Approach: Rules • Bottom up risk management • Repeatable operations • Processes & controls • Automation/ systems Role: Advisor, reviewer, Independent Oversight (integrated assurance) Techniques: Process & Control mapping, reviews 2. Strategy Risks Objective: Avoid likelihood & minimise impact Approach: Dialogue • Strategic anchoring • Business Objectives • Initiatives/ investments • Robust discussions Role: Facilitator, Devil’s advocate, risk/ reward discussions Techniques: Workshops, strategic decisions 3 How 2 What 1 Why
  8. 8. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 How did we get there? “Be Vigilant - Any of these risks can be catastrophic to an organisation.” 1. Operational Risks Objective: Avoid likelihood Approach: Rules • Bottom up risk management • Repeatable operations • Processes & controls • Automation/ systems Role: Advisor, reviewer, Independent Oversight (integrated assurance) Techniques: Process & Control mapping, reviews 2. Strategy Risks Objective: Avoid likelihood & minimise impact Approach: Dialogue • Strategic anchoring • Business Objectives • Initiatives/ investments • Robust discussions Role: Facilitator, Devil’s advocate, risk/ reward discussions Techniques: Workshops, strategic decisions 3. External Risks Objective: Minimise Impact Approach: Planning • Unknowns • Nature/ markets/ politics • Failure scenario planning • BCP Role: Worst case scenario, stress testing Techniques: Scenario Planning 3 How 2 What 1 Why
  9. 9. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 How did we get there? A fresh perspective ‘Avoid the traps’ 3 How 2 What 1 Why
  10. 10. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 How did we get there? A fresh perspective ‘Outcomes not just processes’ 3 How 2 What 1 Why
  11. 11. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 How did we get there? A fresh perspective ‘Keep the balance’ 3 How 2 What 1 Why
  12. 12. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 What’s your perspective?
  13. 13. ANZ For more information please contact Ruby Yadav ruby.yadav@anz.com ph: 0401543801 Gaining Value From Risk Management June 2013 Ruby Yadav is a change agent committed to breaking the mould around traditional assurance models and approaches to gain value for organisations. She has been practicing as an Assurance Professional for over a decade. She currently heads the Digital Assurance team at ANZ and is a member of the Board Audit and Risk Management Committee at Wesley Mission Victoria.

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