My view of the role of the risk profession differs to those who designed and promote the Three Lines of Defence (3LOD) model (at least how it has been interpreted by some). As with my musings on whether there should be separate risk and audit committees for Boards, (see Blog, 22/11/09 “Should Audit and Risk Committees be Separate?” and Risk e-Views - Risk Leadership: Should a Board have a Risk Committee? 22/09/12) I feel risk professionals in organisations need to be advisors and confidants o
All Posts (6368)
Sort by
I have said more than once that the IT industry has much to be blamed for in terms of poor project delivery. I wrote a discussion paper on Project Risk Management where I lead off with “Why could we land a man on the moon in 1969 yet in 2013 we struggle to get a moderate sized IT project delivered successfully? – An acceptance of mediocrity?”
I recently read “Agile for Dummies”published by IBM and authored by Scott W. Ambler and Matthew Holitza, which is about mastering Agile, a project manageme
There is always a lot of buzz about “risk appetite statements” and “risk tolerance.” In theory, these sound like a natural launching point for ERM Programs – how can risk managers manage risks without a known goal of what they should be managing towards?
However, the problem with risk appetite is that it is not actionable, thus organizations see very little impact from having perfectly established risk appetite statements that far too many risk managers spend months developing.. As a result, se
Kenya is a business hub country located in East Africa. Kenya is a good place for entrepreneurs to think of investing in 2014-2015 and staring their ventures for profit maximization. There are several reasons why you should choose Kenya as your next investment destination. one of the most important is that, its a growing economy. However, before making decisions to invest in Kenya, it is important to explore the top small business ideas/opportunities in the developing country.
1. Real Estate Busi
It’s all over the news. Around the world, banks are closing branches and more plan to follow suit. Their reasoning? “Digital is taking over”. However, this presents its own set of challenges. How do banks address them so that they reduce their number of branches, while still delivering compelling service offerings?
This isn’t a recent phenomenon. According to research conducted last year by Nottingham University, the UK’s branch network has shrunk by 40 percent in the last 20 years. Reasons have
Cryptocurrencies are an emerging method and protocol serving to facilitate the exchange of values between human beings. These new virtualized valuation systems can link back to the material through fiat currencies. Value is always relative. A re-valuation of a cryptocurrency represents a devaluation of the material and an increase in value of the individual. These cryptocurrencies provide us with great new pier-to-pier tools and protocols for transparency, privacy, security and real time ris
The purpose of this blog post is to stress the importance of financial education (literacy) by gathering valuable resources that will help both youth and adults get a better understanding of finance.
I chose to write about financial literacy as lack of it represents the basis for most of the legislation and regulation initiatives. With products getting more complex the consumers are more vulnerable to mis-selling. Also, this is no secret consumers may show irresponsibility in their financial deci
NORMALLY CREDIT RISK MANAGERS FOLLOW CONVENTIONAL METHODS TO FACTOR BUSINESS RISK AND CREDIT RATING.
THE OBSOLETE CONVENTIONAL RISK ASSESSMENT IS MAJOR HURDLE IN SUPPORTING A PARTICULAR BUSINESS.
THESE OBSTETRICAL ARE ANTI BUSINESS DEVELOPMENT PARTICULARLY FOR START UPS.
GLOBAL RISK COMMUNITY IS BEST PLATE FORM TO LEARN AND APPLY THE LATEST METHODS AND SHARED OPINIONS OF PROFESSIONALS AND SERVICE PROVIDERS WITH FRIENDLY APPROACH TO PROMOTE BUSINESSES AND BEST ADVISE ON RISK ANALYSIS.
A common challenge for early-stage ERM programs is making the step from risk identification and prioritization to the formalization of a control (or mitigation) environment. Keep in mind, it is only possible to know if a Mitigation Activity is effective and efficient if the objective of this activity is known. The objective o f the activity must also be risk and performance focused. Organizations often lose track of why a particular mitigation activity was implemented to begin with, and fail to
Last week, we introduced the latest findings from studies of the RIMS Risk Maturity Model (RMM). In an effort to explain the model and results of the study more fully, it’s beneficial to break the RMM into each of its attributes. This week we’ll examine the first two attributes of an effective ERM program, ERM Based Approach and ERM Process Management.
ERM Based Approach
The focus of this attribute is to move organizations from an old, obsolete style of governance to a more holistic, integrated ap
Despite a significant rise in the number of affluent investors, the wealth management industry’s track record of keeping its customers happy is still poor. One of the key problems affecting customers of execution-only brokers, for example, is the cost and complexity of transferring investment products between providers. It seems likely that the wealth industry regulators will follow retail banking in making switching rules quick and simple for their customers. Are wealth managers doing their bit
Most fiduciaries who use target date funds are inviting lawsuits
Over the weekend while traveling, I was reading Malcolm Gladwell’s Outliers, 
and as coincidence would have it, I hit “Chapter Seven: The Ethnic Theory of Plane Crashes,” at a cruising altitude of 30,000 feet.
The challenge with Enterprise Risk Management is quantifying how many disasters have been prevented due to its efforts. Because of this, there is still skepticism among senior management around exactly how ERM can help to prevent major operational, strategic, regulatory, and reputational di
Colleges and Universities are some of the most at risk institutions when it comes to high profiles failures in risk management. Reputational risk – and remaining off the homepage of CNN – requires an active approach to managing enterprise governance, and most universities are unsure where to start. An Association of Governing Boards of Universities and Colleges (AGB) report finds:
“After five years of change and upheaval, why is it that governing boards of colleges and universities continue to co
By defining a clear statement of risk appetite, the board and executive can establish clear boundaries within which the organization can execute the strategy and manage risk. It also provides the foundation for cascading the strategy and risk management disciplines through the organization, thus shaping the organization culture. Read more in the Risk-Based Performance Management book #RBPM www.riskbasedperformance.com
The new personal, tailored Journey Risk Assessments and Travel Risk Assessments are live
Journey and Travel Risk Assessments.
The new Country Aviation Risk Ratings are Live at www.countryaviationratings.com
The Risk-Based Performance Management (RBPM) book will be launched tonight in London. Register now at http://tinyurl.com/omztc2n to attend.
“The failure to properly evaluate and challenge risk of overall business strategies was probably the biggest intellectual failure of boards, regulators and shareholders.” Lord Turner, Chairman of the UK’s Financial Services Authority. Read more in the Risk-Based Performance Management book #RBPM
The Relevant Bank concept challenges attempts to finish the roof before starting the foundations.
What does being The Relevant Bank actually mean? First and foremost, it means being relevant personally – offering products and services consumers want, at the moments and through the channels they prefer.
For some time, one of the bits of received wisdom in consumer banking circles has been that you focus on high value customers and endeavor to engage them with high value products and services. In it
