This document discusses the importance of risk appetite and embedding risk culture at organizations. It begins by defining risk appetite as the amount and type of risk an entity is willing to accept over a set period of time to achieve its objectives. The document then notes that weaknesses in risk appetite governance contributed to the financial crisis and that properly establishing and monitoring risk appetite is a board responsibility. It stresses that risk appetite should be integrated into strategic planning and outlines how organizations can set, execute, and monitor their risk appetite.
Governance Culture & Incentives- Fundamentals of Operational RiskAndrew Smart
Governance, Culture & Incentives. -Fundamentals of Operational Risk. This presentation provides some practical tools to answer three key questions and create alignment.
Enterprise Risk Management - Aligning Risk with Strategy and PerformanceResolver Inc.
COSO, which has provided global thought leadership and guidance on internal control, enterprise risk management, and fraud deterrence for over three decades, recently released a draft update to the original COSO ERM Framework. This framework is widely used by organizations to enhance their ability to manage uncertainty, gauge risk, and increase stakeholder value. However, significant new risks have emerged since the Framework was released, demanding heightened board awareness and oversight of risk management, as well as improved risk reporting. For those organizations exploring ESRM – these themes will be strikingly familiar and the lessons learned, highly relevant.
Presentation by: Bob Hirth, Global Chairman of COSO.
PECB Webinar: Aligning ISO 31000 and Management of Risk MethodologyPECB
The webinar covers:
• ISO 31000 as the adopted standard, for ISO standards that have risk components, such as ISO 27005 and OHSAS 18001
• Description of Management of Risk (MoR) – how organizations can benefit
• Complementary values that ISO 31000 and MoR bring to each other
• How Risk Managers can evolve a practical approach to carrying out Risk Processes
Presenter:
This webinar was presented by PECB Trainer Orlando Olumide Odejide, an experienced Enterprise Architect and Chief Trainer for Training Heights Limited.
Integrating Strategy and Risk ManagementAndrew Smart
"A Holistic Approach to Managing Risk amidst Global Uncertainty"
The RMA/Cass Business School
10–14 February 2013
Advanced Risk Management Programme
Organised by Andrew Smart & Nicholas Hawke
In today’s fast-moving, complex environment, risk executives must cultivate an understanding across all risks and businesses. Business problems are multifaceted, interrelated, and increasingly global. Executives must possess enhanced skills to identify and address a wide range of risks with an integrated approach and enterprise-wide perspective.
The RMA/Cass Advanced Risk Management Programme, led by the faculty at Cass, one of the UK’s top business schools, exposes participants to a rigorous, yet inspiring blend of theory, practice and cutting-edge research, instilling knowledge and skills applicable to the real world of global business. In addition to its focus on the known and quantifiable risks of credit, market, and operational, the programme concentrates on the unknowable and difficult to measure risks, including business, strategic, and reputation. Cass has excellent links to the City of London firms and institutions and is able to complement Cass faculty with guest faculty and senior level business practitioners, considered by their peers to be industry thought leaders
Areas of focus for The RMA/Cass Advanced Risk Management Programme include:
• Risk management as a strategic competitive strength
• An integrated approach to risk management
• Fostering a culture and climate that openly communicates risk
• A framework for rapidly responding to known risks and unraveling the complexities of the unknown
• A focus on risk informed by global perspectives.
Enterprise Risk Management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects of risk on an organization's capital and earnings.
Enterprise Risk Management expands the process to include not just risks associated with accidental losses, but also financial, strategic, operational, and other risks.
In recent years, external factors have fueled a heightened interest by organizations in ERM.
Industry and government regulatory bodies, as well as investors, have begun to scrutinize companies' risk-management policies and procedures.
In an increasing number of industries, boards of directors are required to review and report on the adequacy of risk-management processes in the organizations they administer.
Since they thrive on the business of risk, financial institutions are good examples of companies that can benefit from effective ERM.
Their success depends on striking a balance between enhancing profits and managing risk.
In order for any enterprise to properly, effectively, and prudently manage their future growth, Business Strategy needs to be sustained by modern Enterprise Risk Management (ERM) principles and practices.
The Enterprise Risk Management discipline is not anymore a separate management profession or kinky management way, but rather it is a core competency that all organizations and executives must have in this Global Age. It should be a way of life for all.
Governance Culture & Incentives- Fundamentals of Operational RiskAndrew Smart
Governance, Culture & Incentives. -Fundamentals of Operational Risk. This presentation provides some practical tools to answer three key questions and create alignment.
Enterprise Risk Management - Aligning Risk with Strategy and PerformanceResolver Inc.
COSO, which has provided global thought leadership and guidance on internal control, enterprise risk management, and fraud deterrence for over three decades, recently released a draft update to the original COSO ERM Framework. This framework is widely used by organizations to enhance their ability to manage uncertainty, gauge risk, and increase stakeholder value. However, significant new risks have emerged since the Framework was released, demanding heightened board awareness and oversight of risk management, as well as improved risk reporting. For those organizations exploring ESRM – these themes will be strikingly familiar and the lessons learned, highly relevant.
Presentation by: Bob Hirth, Global Chairman of COSO.
PECB Webinar: Aligning ISO 31000 and Management of Risk MethodologyPECB
The webinar covers:
• ISO 31000 as the adopted standard, for ISO standards that have risk components, such as ISO 27005 and OHSAS 18001
• Description of Management of Risk (MoR) – how organizations can benefit
• Complementary values that ISO 31000 and MoR bring to each other
• How Risk Managers can evolve a practical approach to carrying out Risk Processes
Presenter:
This webinar was presented by PECB Trainer Orlando Olumide Odejide, an experienced Enterprise Architect and Chief Trainer for Training Heights Limited.
Integrating Strategy and Risk ManagementAndrew Smart
"A Holistic Approach to Managing Risk amidst Global Uncertainty"
The RMA/Cass Business School
10–14 February 2013
Advanced Risk Management Programme
Organised by Andrew Smart & Nicholas Hawke
In today’s fast-moving, complex environment, risk executives must cultivate an understanding across all risks and businesses. Business problems are multifaceted, interrelated, and increasingly global. Executives must possess enhanced skills to identify and address a wide range of risks with an integrated approach and enterprise-wide perspective.
The RMA/Cass Advanced Risk Management Programme, led by the faculty at Cass, one of the UK’s top business schools, exposes participants to a rigorous, yet inspiring blend of theory, practice and cutting-edge research, instilling knowledge and skills applicable to the real world of global business. In addition to its focus on the known and quantifiable risks of credit, market, and operational, the programme concentrates on the unknowable and difficult to measure risks, including business, strategic, and reputation. Cass has excellent links to the City of London firms and institutions and is able to complement Cass faculty with guest faculty and senior level business practitioners, considered by their peers to be industry thought leaders
Areas of focus for The RMA/Cass Advanced Risk Management Programme include:
• Risk management as a strategic competitive strength
• An integrated approach to risk management
• Fostering a culture and climate that openly communicates risk
• A framework for rapidly responding to known risks and unraveling the complexities of the unknown
• A focus on risk informed by global perspectives.
Enterprise Risk Management (ERM) is the process of planning, organizing, leading, and controlling the activities of an organization in order to minimize the effects of risk on an organization's capital and earnings.
Enterprise Risk Management expands the process to include not just risks associated with accidental losses, but also financial, strategic, operational, and other risks.
In recent years, external factors have fueled a heightened interest by organizations in ERM.
Industry and government regulatory bodies, as well as investors, have begun to scrutinize companies' risk-management policies and procedures.
In an increasing number of industries, boards of directors are required to review and report on the adequacy of risk-management processes in the organizations they administer.
Since they thrive on the business of risk, financial institutions are good examples of companies that can benefit from effective ERM.
Their success depends on striking a balance between enhancing profits and managing risk.
In order for any enterprise to properly, effectively, and prudently manage their future growth, Business Strategy needs to be sustained by modern Enterprise Risk Management (ERM) principles and practices.
The Enterprise Risk Management discipline is not anymore a separate management profession or kinky management way, but rather it is a core competency that all organizations and executives must have in this Global Age. It should be a way of life for all.
A new emphasis on enterprise risk management from regulators has heightened awareness among bankers to get educated and adopt these best practices at their institution. In response to this increased focus, the RMA ERM Council developed the ERM framework and associated competencies, which became the foundation for a series of highly practical workbooks for implementing effective ERM.
Implementation of Enterprise Risk Management with ISO 31000 Risk Management S...PECB
The webinar covers:
• The start of any Enterprise Risk Management Program
• The approach to developing a framework that will assist organizations to integrate RM into their enterprise-wide risk management systems
• The relationship between the foundations of the risk management framework and their objectives
Presenter:
This webinar was presented by M. Youssef K, an executive consultant & trainer with several qualifications. He is an accomplished expert with over 10 years’ experience in the field of risk management, project and program management, PRINCE 2, Agile, EVM, business process analysis and design, as well as operational and organizational excellence.
Link of the recorded session published on YouTube: https://youtu.be/9fO-JqENL0I
Risk Appetite: A new Menu under Basel 3? Pieter Klaassen (UBS - Firm-wide Risk Control & Methodology) voor het Zanders Risicomanagement Seminar 1 november 2012
Integrating Risk into your Balanced Scorecard Andrew Smart
Pulling together into a single framework the two separate disciplines of strategy management and risk management, and how it is possible to integrate it with Balanced Scorecard. This presentation provides a practical guide for organizations to shape and execute sustainable strategies with full understanding of how much risk they are willing to accept in pursuit of strategic goals.
Please contact andrew.smart@stratexsystems.com for more details about the presentation or to have a talk about our software solutions.
Strategic Risk Management as a CFO: Getting Risk Management RightProformative, Inc.
Video & Presentation: http://www.proformative.com/events/strategic-risk-management-cfo-getting-risk-management-right
Enterprise Risk Management should be simple. Unfortunately, companies are responding to regulators and business imperatives to improve their risk management practices, all the while aligning with business strategy and performance as well as capital allocation. Leading practitioners are seeking insight and value from risk management and are using risk management to focus audit and compliance activities. In fact independent research commissioned by SAP and others suggests many successful ERM initiatives still make little use of the increasingly sophisticated technology available. This session will summarize recent research by SAP and others on the state of ERM and will provide simple, practical strategies for how Finance can drive risk management practices that build success and add value.
Speakers:
Bob Tizio, GRC Officer-Americas, SAP America Inc.
Bruce McCuaig, Director, Solution Marketing for Governance Risk & Compliance, SAP
Presentation delivered at CFO Dimensions 2013 - http://www.cfodimensions.com
Track: Finance Technology | Session: 5
The underlying premise of enterprise risk management is that the Company exists to provide value for its stakeholders – customers, employees, and shareholders. Like any business, every Company faces some uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management enables senior management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity’s objectives. These capabilities inherent in enterprise risk management help management achieve the Company’s performance and profitability targets, and minimize loss of resources. Enterprise risk management helps ensure effective reporting and compliance with laws and regulations, and helps avoid damage to the Company’s reputation and associated consequences. In sum, enterprise risk management helps the Company get to where it wants to go and avoid pitfalls and surprises along the way. Enterprise risk management encompasses:
• Aligning Risk Appetite and Strategy
• Enhancing Risk Response Decisions
• Reducing Operational Surprises and Losses
• Identifying and Managing Multiple and Cross-Enterprise Risks
• Seizing Opportunities
• Improving Deployment of Capital
• Leveraging Talent, Structure, Process, and Capital
PECB Webinar: ISO 31000 - The Benchmark for Risk Management in uncertain timesPECB
The webinar covers:
• Overview of ISO 31000 and how this standard implies threats but opportunities as well
• Risk-based thinking as an integral part of ISO 9001:2015 and ISO 14001:2015
• Principles, processes and framework of ISO 31000
• How organizations can reduce uncertainty, seize opportunities and treat risks
Presenter:
This session will be presented by PECB Trainer Jacob McLean, Principal Consultant and Managing Director of Kaizen Training & Management Consultants Limited.
Link of the recorded session published on YouTube: https://youtu.be/MVBMM6X3Vgw
PECB Webinar: ISO 31000 – Risk Management and how it can help an organizationPECB
We will cover:
• Brief overview of the Standard content
• What is Risk Management?
• Guidance on how to position Risk Management in an organization
• Three examples of where Risk Management must be considered
Presenter:
This webinar will be presented by Steve Tremblay, Owner and Executive ITSM/ISO Consultant at Excelsa Tech.
IFAC Senior Technical Manager Vincent Tophoff presentation during the Institute of Chartered Accountants of Pakistan's CFO Conference 2013, CFO: Meeting Future Challenges! Mr. Tophoff discusses current trends and thinking in risk management and best practices.
This presentation focuses on the principles and practicalities of establishing a working risk appetite statement supported by risk limits and tolerances.
Strategic Planning Society Webinar- Integrating Strategy and Risk ManagementAndrew Smart
• The credit crunch and its subsequent fall-out has rewritten the rules on strategy execution and risk management.
• The balanced scorecard and risk management approaches have evolved as silo processes over approximately 20 years – an approach that integrates both is a natural evolution.
• To effectively streamline management and regulatory reporting, organisations need to adopt an integrated framework, which covers strategy execution, risk management & compliance.
A new emphasis on enterprise risk management from regulators has heightened awareness among bankers to get educated and adopt these best practices at their institution. In response to this increased focus, the RMA ERM Council developed the ERM framework and associated competencies, which became the foundation for a series of highly practical workbooks for implementing effective ERM.
Implementation of Enterprise Risk Management with ISO 31000 Risk Management S...PECB
The webinar covers:
• The start of any Enterprise Risk Management Program
• The approach to developing a framework that will assist organizations to integrate RM into their enterprise-wide risk management systems
• The relationship between the foundations of the risk management framework and their objectives
Presenter:
This webinar was presented by M. Youssef K, an executive consultant & trainer with several qualifications. He is an accomplished expert with over 10 years’ experience in the field of risk management, project and program management, PRINCE 2, Agile, EVM, business process analysis and design, as well as operational and organizational excellence.
Link of the recorded session published on YouTube: https://youtu.be/9fO-JqENL0I
Risk Appetite: A new Menu under Basel 3? Pieter Klaassen (UBS - Firm-wide Risk Control & Methodology) voor het Zanders Risicomanagement Seminar 1 november 2012
Integrating Risk into your Balanced Scorecard Andrew Smart
Pulling together into a single framework the two separate disciplines of strategy management and risk management, and how it is possible to integrate it with Balanced Scorecard. This presentation provides a practical guide for organizations to shape and execute sustainable strategies with full understanding of how much risk they are willing to accept in pursuit of strategic goals.
Please contact andrew.smart@stratexsystems.com for more details about the presentation or to have a talk about our software solutions.
Strategic Risk Management as a CFO: Getting Risk Management RightProformative, Inc.
Video & Presentation: http://www.proformative.com/events/strategic-risk-management-cfo-getting-risk-management-right
Enterprise Risk Management should be simple. Unfortunately, companies are responding to regulators and business imperatives to improve their risk management practices, all the while aligning with business strategy and performance as well as capital allocation. Leading practitioners are seeking insight and value from risk management and are using risk management to focus audit and compliance activities. In fact independent research commissioned by SAP and others suggests many successful ERM initiatives still make little use of the increasingly sophisticated technology available. This session will summarize recent research by SAP and others on the state of ERM and will provide simple, practical strategies for how Finance can drive risk management practices that build success and add value.
Speakers:
Bob Tizio, GRC Officer-Americas, SAP America Inc.
Bruce McCuaig, Director, Solution Marketing for Governance Risk & Compliance, SAP
Presentation delivered at CFO Dimensions 2013 - http://www.cfodimensions.com
Track: Finance Technology | Session: 5
The underlying premise of enterprise risk management is that the Company exists to provide value for its stakeholders – customers, employees, and shareholders. Like any business, every Company faces some uncertainty, and the challenge for management is to determine how much uncertainty to accept as it strives to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. Enterprise risk management enables senior management to effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build value. Value is maximized when management sets strategy and objectives to strike an optimal balance between growth and return goals and related risks, and efficiently and effectively deploys resources in pursuit of the entity’s objectives. These capabilities inherent in enterprise risk management help management achieve the Company’s performance and profitability targets, and minimize loss of resources. Enterprise risk management helps ensure effective reporting and compliance with laws and regulations, and helps avoid damage to the Company’s reputation and associated consequences. In sum, enterprise risk management helps the Company get to where it wants to go and avoid pitfalls and surprises along the way. Enterprise risk management encompasses:
• Aligning Risk Appetite and Strategy
• Enhancing Risk Response Decisions
• Reducing Operational Surprises and Losses
• Identifying and Managing Multiple and Cross-Enterprise Risks
• Seizing Opportunities
• Improving Deployment of Capital
• Leveraging Talent, Structure, Process, and Capital
PECB Webinar: ISO 31000 - The Benchmark for Risk Management in uncertain timesPECB
The webinar covers:
• Overview of ISO 31000 and how this standard implies threats but opportunities as well
• Risk-based thinking as an integral part of ISO 9001:2015 and ISO 14001:2015
• Principles, processes and framework of ISO 31000
• How organizations can reduce uncertainty, seize opportunities and treat risks
Presenter:
This session will be presented by PECB Trainer Jacob McLean, Principal Consultant and Managing Director of Kaizen Training & Management Consultants Limited.
Link of the recorded session published on YouTube: https://youtu.be/MVBMM6X3Vgw
PECB Webinar: ISO 31000 – Risk Management and how it can help an organizationPECB
We will cover:
• Brief overview of the Standard content
• What is Risk Management?
• Guidance on how to position Risk Management in an organization
• Three examples of where Risk Management must be considered
Presenter:
This webinar will be presented by Steve Tremblay, Owner and Executive ITSM/ISO Consultant at Excelsa Tech.
IFAC Senior Technical Manager Vincent Tophoff presentation during the Institute of Chartered Accountants of Pakistan's CFO Conference 2013, CFO: Meeting Future Challenges! Mr. Tophoff discusses current trends and thinking in risk management and best practices.
This presentation focuses on the principles and practicalities of establishing a working risk appetite statement supported by risk limits and tolerances.
Strategic Planning Society Webinar- Integrating Strategy and Risk ManagementAndrew Smart
• The credit crunch and its subsequent fall-out has rewritten the rules on strategy execution and risk management.
• The balanced scorecard and risk management approaches have evolved as silo processes over approximately 20 years – an approach that integrates both is a natural evolution.
• To effectively streamline management and regulatory reporting, organisations need to adopt an integrated framework, which covers strategy execution, risk management & compliance.
Cathy Hauslein - Susser Holdings, Speaker at the marcus evans CFO Summit Fall 2011 in Las Vegas, NV, delivered her presentation entitled Finance is Risky Business: Monitoring and Managing Your Company’s Risk Appetite
A world without standards is road to chaos and IT processes are no exception. This presentation talks nicely in more friendly manner about IT Standards of ISO 27001, ISO 20000, CobiT, ISO 38500
Re-Architect Your Legacy Environment To Enable An Agile, Future-Ready EnterpriseDell World
It’s time to re-architect your legacy environment in order to lay the foundation for an adaptive enterprise. In this session, you'll learn how to increase your business and technical agility using a fit-to-purpose .NET or Java architecture, while deploying your apps intelligently in the cloud and integrating with your complex IT environment, customers and partners.
Enterprise Transformation through Cognizant’s XaaS fabric on AWS (ENT222) | A...Amazon Web Services
(Presented by Cognizant) Unlocking the true value of the AWS cloud is not a one-size-fits all task. As a Premier Consulting Partner, we have worked with a number of enterprises on their journey towards the AWS cloud. As a best practice, we have developed tools and frameworks to assist along the way. Join our experts as we discuss practical examples of AWS implementations, based on which you can help your organization run better and run different.
-Cloud Stepz is a structured factory based process framework that helps clients migrate their application workloads to a cloud environment. It covers three major phases of the cloud journey, which are Strategy & Roadmap, Workload Assessment, and Migration Foundry.
-Cloud360 hyperplatform is a manager of enterprise cloud services that abstracts and governs private, public, and legacy IT assets and delivers a superior, on-demand service experience.
-assetSERV makes digital content management easy for large enterprises. Its cloud-based platform delivers tailored, on-demand marketing content that can be accessed and managed anytime, anywhere, and on any device.
IT Governance or Corporate governance of information technology is a subset discipline of corporate
governance, focused on information and technology (IT) and its performance and risk management.
The interest in IT Governance is due to the ongoing need within organizations to focus value creation efforts
on an organization's strategic objectives and to better manage the performance of those responsible for creating this value in the best interest of all stakeholders.
In todays’ digital economy, enterprises expect more from the IT organization. They want applications delivered faster, and they want IT infrastructure to perform at a higher level than ever before. Consequently, IT operations must transform itself to better serve the business.
Llearn about top strategies for transforming IT in the digital era!
The agile enterprise - Digital Transformation as a practical applicationdie.agilen GmbH
The buzzword "digital transformation" is all the rage and will trigger the largest industrial revolution since more than a century for sure. But what does this mean in concrete terms? How will the change look like that companies have to fulfill? We will not only have a look at the 10 dimensions of the "Digital Maturity Level Model", which indicates how mature a company is in terms of the „digital age“ but on concrete practical oriented methods and processes of the digital transformation like Scrum, Kanban, Design Thinking, Lean Startup, LEGO SERIOUS PLAY, OKR and many more as well. At the end of the transformation there is a new, converted corporate form - the agile enterprise.
Ariba Coverage of Risk Management within the Supplier LifecycleSean Thomson
We are excited to announce the general availability of SAP Supplier InfoNet version 3.0.This release supports our continued commitment to delivering superior risk insights and an enhanced end user experience. The release went live on 12th Dec, 2015.
Embedding RCSA into Strategic Planning and Business StrategyAndrew Smart
Embedding RCSA into Strategic Planning and Business Strategy
This presentation was prepared for the New Generation Operational Risk: Risk Culture and Business Conduct Behaviour conference in Helsinki, Finland.
In this presentation, Ascendore CEO, Andrew Smart outlines how to integrate Risk & Control Self Assessment into the Strategic Planning and Business Strategy.
Based on the Risk-Based Performance Management approach, during this presentation an integrated approach to strategy and risk management is outlined, with risk appetite playing a central role.
Embedding RCSA into Strategic Planning and Business StrategyAscendore Limited
Embedding RCSA into Strategic Planning and Business Strategy
This presentation was prepared for the New Generation Operational Risk: Risk Culture and Business Conduct Behaviour conference in Helsinki, Finland.
In this presentation, Ascendore CEO, Andrew Smart outlines how to integrate Risk & Control Self Assessment into the Strategic Planning and Business Strategy.
Based on the Risk-Based Performance Management approach, during this presentation an integrated approach to strategy and risk management is outlined, with risk appetite playing a central role.
M_o_R is intended to help organisations put in place an effective framework for risk management. This will help them make informed decisions about the risks that affect their strategic, programme, project and operational objectives. The guide provides a route map for risk management, bringing together basic concepts, an approach, a process with a set of interrelated process steps, and pointers to more detailed sources of advice on risk management techniques and specialisms. It also provides advice on how the principles, approach and processes should be embedded, reviewed and applied differently depending on the nature of the objectives at risk.
This three day Management of Risk (M_o_R) course is designed to illustrate this best practice framework and give candidates an understanding of risk as it should be managed across an organisation. Within project and programme environments there will always be risk which needs to be identified, analysed and managed. Other areas of an organisation will also be exposed to risks as operational functions are carried out. M_o_R provides guidance on how best to deal with all these areas.
The Guide has been written by leading industry experts and is part of the ‘Swirl’ set of best practices managed by AXELOS, which includes ITIL, PRINCE2 & MSP methodologies. This training event is designed to prepare candidates to manage risks in a controlled and structured way by examining the M_o_R guide. Examinations are available during the event for candidates to achieve the Foundation level certification.
Syzygal is a globally Accredited Training Organisation and Accredited Courseware Provider for the M_o_R education & certification program. We are accredited by the following Examination Institutes: APMG, EXIN, Loyalist and PEOPLECERT.
Five lines of assurance a new paradigm in internal audit & ermDr. Zar Rdj
• Boards are provided with a tangible vehicle to demonstrate they are actively overseeing the company’s “risk appetite framework” (“RAF”)
• The process is designed to fully integrate with strategic planning, new product/service initiatives, and M&A activities.
• The process provides a clear response to emerging expectations like the UK Governance Code, Canadian Securities Administrators, SEC, FSB, credit agencies, institutional investors and TSB.
• The main role of internal audit is to report on the effectiveness of the risk management processes and the consolidated report on residual risk status the board receives from the CEO or his/her designate and to help the company build and maintain robust risk management processes
• Boards are provided with a tangible vehicle to demonstrate they are actively overseeing the company’s “risk appetite framework” (“RAF”)
• The process is designed to fully integrate with strategic planning, new product/service initiatives, and M&A activities.
• The process provides a clear response to emerging expectations like the UK Governance Code, Canadian Securities Administrators, SEC, FSB, credit agencies, institutional investors and TSB.
• The main role of internal audit is to report on the effectiveness of the risk management processes and the consolidated report on residual risk status the board receives from the CEO or his/her designate and to help the company build and maintain robust risk management processes.
Enterprise Risk Management and SustainabilityJeff B
An overview of our endeavors at implementing ISO 31000 enterprise risk management and the importance of establishing good risk culture within the company.
This presentation provides a comprehensive plan for implementing an enterprise risk management program. It covers the costs/benefits of an ERM program, the critical knowledge, skills and abilities of a Chief Risk Officer, a risk taxonomy for insurance firms, a hypothetical organizational structure for an electric utility, a sample risk register, and other useful information.
2017 coso-erm-integrating-with-strategy-and-performance-executive-summaryVALUES & SENSE
This update to the 2004 publication addresses the evolution of enterprise risk management and the need for organizations to improve their approach to managing risk to meet the demands of an evolving business environment. The updated document, titled Enterprise Risk Management—Integrating with Strategy and Performance, highlights the importance of considering risk in both the strategy-setting process and in driving performance.
Governance enables your institution to effectively manage its risk-taking activities. Learn about the four essential capabilities for building strong risk governance and the eight benefits strong risk governance yields.
Aligning strategy decisions with risk appetite
Presented by David Shearer
Monday 10th October 2016
APM North West branch and Risk SIG conference
Alderley Park, Cheshire
Having trouble with your enterprise risk management strategy? Map it.Andrew Smart
In 2016, it was estimated that 67% of well-formulated strategies failed due to poor execution and 1 in 3 business leaders rate their firm as poor or very poor at the implementation of strategy.
Like business strategy, the risk management strategy presents execution challenges for the CRO and Risk Management teams.
Paraphrasing the original article that introduced the Strategy Map, in the presentation, Ascendore CEO outlines how the Strategy Map can be used as part of an overall strategy management system to improve the execution of the risk management strategy. This presentation is based on an Ascendore customers use of the Strategy Map for Operational Risk Management.
Enabling Cyber Risk Management- Many of the fines issued by the FCA over the past few years can be attributed to poor information management. The threats from external cyber-attack and malicious insiders are escalating, with your corporate and client information being the primary target of the cyber criminals. The legal requirement on UK businesses will evolve with the proposed EU data protection regulation likely to come into force next year. It is therefore critical to implement robust information risk management. This recorded webinar will discuss the risks and highlight some practical steps to develop and integrate information risks into your ERM.
Managing Information Risk in Financial Services Andrew Smart
Managing Information Risk in Financial Services Webinar Feb 26th 2014
presented by Colin Lobley
http://manigent.com/uk.linkedin.com/pub/colin-lobley/2/7/563
Many of the fines issued by the FCA over the past few years can be attributed to poor information management. The threats from external cyber-attack and malicious insiders are escalating, with your corporate and client information being the primary target of the cyber criminals. The legal requirement on UK businesses will evolve with the proposed EU data protection regulation likely to come into force next year. It is therefore critical to implement robust information risk management.
Watch the full presentation Video on Youtube: http://youtu.be/775wFMtG2oE
Feb 19th 2014 "Enabling Effective Conduct Risk"
Webinar 10:00-11:00 GMT
Focusing on the FCA and the Conduct Risk agenda, in this webinar, "Enabling Effective Conduct Risk", StratexSystems will demonstrate how firms can effectively manage conduct risk by taking an integrated approach to strategy and risk management, and how the StratexPoint solution can support firms as they seek to meet the challenges of conduct risk and engage effectively with the new regulator around this agenda.
During the webinar, StratexSystems will outline:
‘The Seven Key Challenges of Conduct Risk Management’;
Managing and embedding Governance into the business
Definition and embedding the Business Model
Definition and execution of the Business Strategy with customers at its heart
Enabling & embedding Conduct Risk specific processes
Process Management, and specifically New Product Development
Product level performance and risk management
Conduct incident reporting and analysis
StratexSystems will demonstrate during the webinar that Enabling Effective Conduct Risk Management is not about throwing everything that one currently does away and starting afresh but rather building on existing strategy execution and risk management processes and tools.
Additionally, during the webinar we will demonstrate that if firms approach Conduct Risk from the right perspective, they can generate significant value, beyond simply satisfying a regulatory compliance demand.
Making Conduct Risk [Good] Business As UsualAndrew Smart
Andrew Smart sought to de-mistify some of the market perceptions about Conduct Risk Management and show how to make Conduct Risk Business As Usual. He showed that Conduct Risk Management should not be regarded as a new management framework or process, rather it should be embedded within the business strategy and operational processes.
StratexPoint is an integrated strategy execution and risk management solution built on Microsoft SharePoint.
StratexPoint enables organisations to clarify their strategic objectives, align their risk appetite and manage their key risks to enable the sustainable execution of their strategy.
A practical approach to defining indicators within an integrated ERM Framework
Workshop Overview
Many organisations have made considerable progress in the area of enterprise and operational risk management since the financial crisis in 2007/2008. However events over the last few years have demonstrated, and continue to demonstrate the need to make improvements in organisational risk management capabilities and tools.
One area of weakness and, particular challenge for many organisations is around indictors, specifically developing and managing with Key Risk indicators (KRIs). KRIs have a vital role to play in monitoring and managing risk exposure within any organisation, and should be developed and deployed in the context of a wider indicator suite which includes Key Performance Indicators (KPIs) and Key Control Indicators (KCIs).
Workshop Objective
This interactive workshop provided attendees with a deep understanding of developing and managing with Key Risk Indicators. We started by providing an overarching management framework which integrated strategy execution and risk management. We then moved on to clarify the role of KRIs, alongside KPIs and KCIs.
Using a combination of presentations and practical examples, we were able to:
Learn how to define robust suite of indicators, including the different between Leading and Lagging, and Financial and Non-Financial indicators
Understand how to use a well-structured risk definition to guide the definition of KRIs
Understand the relationship between risk appetite and KRIs, and however Risk Appetite should influence the definition of KRIs
Understand the role KRIs play in scenario analysis
Understand the role of KRIs in the risk assessment process
Understand the role of KRIs within the risk, regulatory and management reporting
Who Attended:
CROs, Directors, General Managers, Senior Management and Managers of: Operations, Operational Risk Management, Enterprise Risk Management, Internal Audit, Compliance, Operational Risk, Strategy and Performance.
Please contact andrew.smart@stratexsystems.com for more details about the presentation or to have a talk about our software solutions.
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Focusing on the FCA and the Conduct Risk agenda, in this webinar, "Enabling Effective Conduct Risk", Andrew Smart demonstrates how firms can effectively manage conduct risk by taking an integrated approach to strategy and risk management, and how the StratexPoint solution can support firms as they seek to meet the challenges of conduct risk and engage effectively with the new regulator around this agenda.
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Andrew demonstrates during the webinar that Enabling Effective Conduct Risk Management is not about throwing everything that one currently does away and starting afresh but rather building on existing strategy execution and risk management processes and tools.
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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1. ShapingYour Culture via Risk Appetite
Embedding the tone from the top
Prepared
for:
StratexSystems
Webinar
Series
18
October
2012
2. Page
§
2
About StratexSystems
“StratexPoint
enabled
us
to
reduce
the
value
of
our
opera6onal
losses
by
94%,
the
volume
by
63%
and
our
economic
capital
provision
by
23%”
-‐
Head
of
Opera=onal
Risk,
HML
-‐
Skipton
group
Our
mission
To
provide
an
integrated
strategy
and
risk
management
solu8ons
which
enhances
strategy
execu=on,
enhance
capital
efficiency
by
15%
and
reduce
opera=onal
losses
25%
while
providing
100%
confidence
that
your
business
is
opera=ng
within
appe=te.
3. Page
§
3
Agenda
§ What is Risk Appetite?
§ What do we mean culture & risk culture ?
§ Embedding the ‘tone from the top’
5. Page
§
5
The credit crunch and subsequent fall-out is rewriting
the rules on strategy execution and risk management
6. Page
§
6
Corporate governance weaknesses related to Risk
Appetite contributed to the credit crunch
Supervisors
see
insufficient
evidence
of
board
involvement
in
seOng
and
monitoring
adherence
to
firms’
risk
appe=te.
Risk
appe=te
statements
are
generally
not
sufficiently
robust;
such
statements
rarely
reflect
a
suitably
wide
range
of
measures
and
lack
ac8onable
elements
that
clearly
ar8culate
firms’
intended
responses
to
losses
of
capital
and
breaches
in
limits.
Board-‐level
engagement
in
risk
oversight
should
be
materially
increased,
with
par8cular
aKen8on
to
the
monitoring
of
risk
and
discussion
leading
to
decisions
on
the
en=ty’s
risk
appe=te
and
tolerance.
Remunera=on
structures
for
all
such
“high
end”
employees
are
appropriately
aligned
with
the
medium
and
longer-‐term
risk
appe=te
and
strategy
of
the
en8ty.
In
essence,
the
obliga8on
of
the
board
in
respect
of
risk
should
be
to
ensure
that
risks
are
promptly
iden8fied
and
assessed;
that
risks
are
effec8vely
controlled;
that
strategy
is
informed
by
and
aligned
with
the
board’s
risk
appe=te;
and
that
a
suppor8ve
risk
culture
is
appropriately
embedded
so
that
all
employees
are
alert
to
the
wider
impact
on
the
whole
organisa8on
of
their
ac8ons
and
decisions.
7. Page
§
7
Organisations are increasingly looking to ‘Risk
Management’ as a source of competitive advantage
Neither
too
cau=ous
nor
too
reckless,
the
best
companies
use
their
risk
management
capabili=es
to
adjust
either
their
capacity
or
their
appe=te
to
make
more
prudent—
and
ul=mately
successful—
investment
decisions.
Source:
Accenture
2011
Global
Risk
Management
Study
64%
Almost
two-‐thirds
of
Risk
Masters
64%
indicate
that
their
risk
management
capabili=es
provide
compe==ve
advantage
to
“a
great
extent,”
compared
with
only
42%
of
the
peer
set.
8. Page
§
8
Evidence suggests many corporate governance
weaknesses and Board level challenges still exist
“the Board is responsible for determining the nature and extent
of the significant risks it is willing to take in achieving its strategic
goals.” UK Corporate Governance Code, 2010
21%
“only
21%
align
their
risks
with
their
business
strategy”
–
Grant
Thornton
Corporate
Governance
Review
2011
Where
the
Board
need
to
spend
more
=me…
70%
Strategy
42%
Execu=on
47%
Performance
Management
67%
Risk
Management
21%
“Only
21%
of
directors
surveyed
claim
a
complete
understanding
of
their
companies’
current
strategy”
–
Mckinsey
Global
Survey
–
Corporate
Governance,
2011
“results
indicate
a
need
to
be0er
educate
Boards
on
industry
dynamics
and
how
their
companies
create
value...”
Approx.
1500
par=cipants
9. Page
§
9
What is Risk Appetite?
§ The COSO definition provides ‘What,Who,When and
Why’ of risk appetite
§ What: the amount and type of risk
§ Who: an organisational entity
§ When: over a defined time horizon
§ Why: to achieve the objectives of the entity
Risk
appe8te
is
the
amount
and
type
of
risk
that
is
acceptable
to
be
taken
by
an
organisa8onal
en8ty
over
a
defined
8me
period,
to
achieve
the
objec8ves
of
that
en8ty
–
COSO
Enterprise
Risk
Management
Risk
appe<te
sets
the
boundaries
within
which
strategy
is
executed
–
StratexSystems
10. Page
§
10
Risk Appetite should be integrated
into your organisational strategic
framework
Business
Goals
Business
Model
Business
Drivers
Internal
Analysis
External
Analysis
Business
Objec=ves
Strategy
Appe=te
Appe=te
Alignment
Risk
Management
Performance
Management
Appe=te
Iden8fy
strengths
&
weaknesses
Iden8fy
threats
&
opportuni8es
Is
our
business
model
fit
for
purpose?
Is
our
business
model
fit
for
purpose?
Are
we
opera8ng
within
appe8te?
Manage
threats
&
opportuni8es
Are
we
on-‐track
to
deliver?
Manage
strengths
&
weaknesses
Appe=te
SeYng
Execu8on
Formula8on
SeOng
§ From
high-‐level
strategies
to
specific
business
objec8ves
§ Define
specific
business
objec8ves
and
appe8te
for
specific
en8ty’s
§ Alloca8on
of
scarce
resources
by
en8ty,
risk
category,
product
lines
Execu=on
§ Are
we
on-‐track
to
achieve
our
business
objec8ves
§ Are
we
opera8ng
within
appe8te
(are
we
taking
too
much,
or
not
enough
risk?)
§ Do
we
have
the
right
level
of
controls
in
place
to
meet
internal
and
external
compliance
drivers?
§ Are
we
aligning
our
change
agenda
to
our
strategic
agenda?
Formula=on
§ Development
of
high-‐level
strategies
and
alloca8on
of
scarce
resources,
including
capital
§ Given
our
business
context,
what
is
our
appe8te
for
risk?
§ Given
our
appe8te,
have
we
got
the
right
business
model?
§ Are
we
comfortable
with
the
assump8ons
we
have
made?
11. Page
§
11
Risk Appetite is the ‘glue’ that brings together Strategy
& Risk Management
Performance
Management
Risk
Management
Strategy
Management
Appe=te
What
are
we
trying
to
achieve?
Are
we
on
track?
What
is
our
Risk
Appe=te?
Are
we
opera=ng
within
appe=te?
Governance
&
Communica=ons
Culture
13. Page
§
13
What is Culture?
The thing I have learned at IBM is that culture is
everything – LouisV. Gerstner, Jr. former CEO
IBM
Culture Eats Strategy For Breakfast - Peter Drucker
Culture
comprises
an
organisa<on’s
widely
shared
values,
symbols,
behaviours
and
assump<ons
–
Rob
Goffee
&
Gareth
Jones
The
way
we
get
things
done
around
here
14. Page
§
14
What is Risk Culture?
Risk
culture
can
be
defined
as
the
norms
and
tradi8ons
of
behaviour
of
individuals
and
of
groups
within
an
organiza8on
that
determine
the
way
in
which
they
iden8fy,
understand,
discuss,
and
act
on
the
risks
the
organiza8on
confronts
and
the
risks
it
takes.
A
robust
risk
culture
is
a
substan8al
determinant
of
whether
a
firm
is
able
successfully
to
execute
its
chosen
strategy
within
its
defined
risk
appe8te.
15. Page
§
15
Risk Culture Framework
Source:
Taking
Control
of
organisa=onal
risk
culture
-‐
McKinsey
&
Co,
2010
16. Page
§
16
Risk Culture failings fall into relatively predictable
categories
§ Disregard for risk
§ Over-confidence
§ Business Units evading or distorting risk
management efforts
§ Risk Management failing emerge, with
no apparent consequences
§ Sweeping problems under the carpet
§ Assumptions are not challenged
§ Blind spots as a result of lack of
challenge or excessive challenge
§ Shoot-the-messenger mentality
§ Siloed risk management processes
§ Passivity
§ Not sharing warning signals
§ Indifference
§ Denial
§ Excessive hierarchical organisations no
listening to the front-line
§ Tribal culture
§ Ignorance
§ lack of understanding of risk or risk
management issues
§ Faulty communication of the firms risk
appetite
§ Failure to be clear about who is in
charge of risk issues
§ Ignorance can reflect lack of insight
§ Failure to correct bad behaviours
§ Frequent breaches of procedure,
ignoring of limits, failures to complete
reports, or disregard of compliance
requirements, can contribute to issues
above
§ Excusing the behaviour of those who
are generating high revenue volumes
§ Focusing on ‘hit’ while overlooking
‘Near Misses’
§ Failure to send the correct signals
17. Page
§
17
Culture was seen as a main contributory factors to the
Libor scandal
We
place
considerable
emphasis
on
the
CEO
seDng
the
right
culture,
risk
appe6te
and
control
framework….
Hector
Sans,
FSA
18. Page
§
18
In the wake of a $3B fine for mis-selling drugs, GSK are
transforming their culture
A culture of putting patients first is our priority
19. Page
§
19
Fukushima crisis ‘made in Japan’ - ingrained conventions
of Japanese culture.
20. Page
§
20
The Right Culture should ensure…
The
right
people…
Are
doing
the
right
things…
At
the
right
=me…
With
the
right
amount
of
challenge…
To
seize
opportuni=es
and
manage
threats…
While
opera=ng
within
appe=te
21. Page
§
21
The seven key characteristics of a Strategy-focused, Risk-
aware culture
Strategy-‐focused,
Risk-‐
aware
culture
1.
Driven
by
a
compelling
vision
2.
Live
by
a
clear
set
of
values
3.
Led
with
integrity
4.
Align
risk-‐taking
to
strategy
7.
Incen=ves
are
aligned
to
appe=te
6.
Engage
in
high
quality
conversa=ons
5.
Established
clear
accountabili=es
23. Page
§
23
Tone from the top is critical is shaping culture
Vision
Mission
Values
Shareholder
value
Risk
Appe=te
Processes
Key
Controls
Tone
from
the
Top
What
we
do
on
a
day-‐to-‐day
basis
What
we
think
on
a
day-‐to-‐day
basis
Strategy
Controls
Risks
indicators
Shared
values
Behaviours
Incen=ves
Leadership
Symbols
24. Page
§
24
Strategy Map helps make ‘tone from the top’,
Leadership,Vision ‘tangible
25. Page
§
25
Using drivers to frame appetite setting enables the Board to set
clear a clear ‘tone from the top’ and operating boundaries
Business
drivers
Capital
Income
Reputa=on
Shareholder
value
Share
price
Economic
value
add
Profit
Strategy
Align
Risk-‐taking
to
Strategy
Manage
Risk
Manage
Performance
Appe=te
Governance
Communica=on
Culture
Appe=te
26. Page
§
26
Using drivers to frame appetite setting enables the Board to set
clear a clear ‘tone from the top’ and operating boundaries
Business
Drivers
Low
Moderate
High
Extreme
Capacity
Limit
Income
X%
Capital
@Risk
X%
Capital
@Risk
X%
Capital
@Risk
X%
Capital
@Risk
Capital
Up
to
X
£M
X
£M
to
Y
£M
X
£M
to
Y
£M
X
£M
to
Y
£M
Above
X
£M
Reputa=on
Up
to
X
vol.
Bad
coverage
Up
to
X
vol.
Bad
coverage
Up
to
X
vol.
Bad
coverage
Up
to
X
vol.
Bad
coverage
27. Page
§
27
Using drivers to frame appetite setting enables the Board to set
clear a clear ‘tone from the top’ and operating boundaries
Business
Drivers
Low
Moderate
High
Extreme
Capacity
Limit
Income
X%
Capital
@Risk
X%
Capital
@Risk
X%
Capital
@Risk
X%
Capital
@Risk
Capital
Up
to
X
£M
X
£M
to
Y
£M
X
£M
to
Y
£M
X
£M
to
Y
£M
Above
X
£M
Reputa=on
Up
to
X
vol.
Bad
coverage
Up
to
X
vol.
Bad
coverage
Up
to
X
vol.
Bad
coverage
Up
to
X
vol.
Bad
coverage
28. Page
§
28
Those same drivers are used in the risk assessment
process
Capital
@Risk
Reputa=on
@Risk
Impact
x
Likelihood
(over
a
=me
horizon)
29. Page
§
29
Appetite Alignment Matrix is a key tool for monitoring the
alignment of Risk-taking to Strategy
§ Enabling
monitoring
of
risks
which
are
outside
of
Appe8te
§ Shows
where
we
are
taking
to
much
and
not
enough
risk
§ Changes
the
risk
conversa8on
§ Answers
the
ques8on:
Are
we
opera=ng
with
in
Appe=te?
30. Page
§
30
Risk Maps is powerful tools for creating transparency
around risk
31. Page
§
31
Effective Controls has an important role in reinforcing
the tone from the top
32. Page
§
32
An accountabilities model is ‘baked’ into our solutions
“The
buck
stops
here”
Those
with
Yes/No
authority
related
to
the
objec8ve,
risk
or
control.
“Keep
in
the
loop”
Those
involved
prior
to
decisions
or
ac8on
related
to
the
objec8ve,
risk
or
control.
“The
doers”
Those
people
working
on
delivering
the
objec8ve,
managing
the
risk
or
applying
the
control.
“Keep
in
the
picture”
Posi8on(s)
that
need
to
know
about
decision
or
ac8on
related
to
the
objec8ve,
risk
or
control.
P
33. Page
§
33
An accountabilities model is ‘baked’ into our solutions
34. Page
§
34
Our solutions provide a number of ‘tools’ to help
embedding the tone from the top
Strategy Map Risk Map
Appetite Alignment Matrix
35. Page
§
35
About StratexSystems
“StratexPoint
enabled
us
to
reduce
the
value
of
our
opera6onal
losses
by
94%,
the
volume
by
63%
and
our
economic
capital
provision
by
23%”
-‐
Head
of
Opera=onal
Risk,
HML
-‐
Skipton
group
Our
mission
To
provide
an
integrated
strategy
and
risk
management
solu8ons
which
enhances
strategy
execu=on,
enhance
capital
efficiency
by
15%
and
reduce
opera=onal
losses
25%
while
providing
100%
confidence
that
your
business
is
opera=ng
within
appe=te.
36. Page
§
36
Our solution enables our clients to “control their risks
while executing strategy”
37. Page
§
37
Examples of where our solution has added real and
tangible business value
60%
23%
182
Op
losses
HML
seen
a
60%
reduc8on
in
opera8onal
losses
within
18
months
Regulatory
capital
HML
also
seen
a
23%
reduc8on
in
regulatory
capital
Ini8a8ves
Consolidated
global
pormolio
of
major
ini8a8ves
to
enable
single
view
of
status
&
risk
38. Page
§
38
Free trail of StratexLive
Stratex
Bootcamp
§ 30
day
free
use
of
StratexLive
§ Regular
‘coaching’
session
online
§ Load
your
own
data
§ Add
your
own
users
§ START
NOW