Introduction The nature of risk management is perpetually evolving which is of course, natural, as practitioners seek to drive improvements through either rethinking existing practices or through innovation. One such area on which there is often no overall agreement, is that of risk aggregation. There are few studies on this issue and neither ISO nor […]
Introduction For banks or financial institutions, risk appetite is a particularly important component of an end-to end risk management framework. It needs to be supported by other risk management components, such as a comprehensive risk taxonomy, robust risk identification and assessment processes, data and analytics capabilities, and a risk aggregation and prioritization logic based on […]
KPIs, KRIs, KCIs… It’s easy to get tangled in the alphabet soup 🥣 of metrics. While each of these ‘K & Is’ plays a distinct role in your organisation’s success, they are all ultimately just indicators serving a different purpose. ⬇ Here’s the breakdown: 🔹 KPIs (Key Performance Indicators) – These metrics keep score of […]
Necessities for Effective Risk Management What is it? A control is any action taken by management, the board, and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved. (Source: IIA/IPPF) There may be different definitions, but I personally like this one as it includes all the key […]
In my previous article, I discussed assessing ERM maturity. Here I will run through the main points of implementing an ERM programme. It is worth noting that every organisation’s ERM implementation programme should be based on its own maturity, objectives, requirements and applicable regulatory standards. However, the points below should help to benchmark your approach. […]
In the ever-evolving landscape of business, risk is not a static concept; it’s dynamic, multifaceted, and omnipresent. To thrive in this environment, organizations must adopt a proactive approach to managing risks. This is where Enterprise Risk Management (ERM) comes into play. ERM isn’t just about mitigating risks; it’s about strategically identifying, assessing, and leveraging risks […]
In my previous article, I discussed the Case for Enterprise Risk Management (ERM) to an organisation. But how does it in turn add value to stakeholders, including employees, customers, suppliers, shareholders, regulators etc.? In essence, it makes it easier to do their jobs, provides protection, creates opportunity, promotes good governance and creates transparency. Here are […]
As the saying goes, the only constant is change. Which is particularly true of current times – from disruptive technological advancements (e.g. AI, Blockchain, ESG initiatives) to ever-evolving legal or regulatory changes (e.g. privacy, tax, capital) and unforeseen global crises or looming recessions. Organisations face a variety of risks that can threaten their viability and […]
