Even more than reputational risk or cyber risk, social unrest is lining up to be a greater disrupter than any other issue. From Brexit to ISIS to race relations, civil unrest is shaping up to have a profound impact on business. For the management of uncertainty on business objectives to be truly effective then risk needs to also include all items that disrupt the marketplace. As such, Social Responsibility is the primary strategy to ensure business resilience.
Enterprise Compliance Today
I have often written on my view that there is an over emphasis these days on Black Swans in risk management. The Brexit vote on Thursday not only shot shockwaves through financial markets but has created a whole new paradigm to world economic stability both short and long term. And if Risk is defined as uncertainty then as of today, this must be one of our greatest risks.
Risk management is suffering from too much consultant-speak – mystifying what is a standard business practice. When inducting new staff in the concepts of risk management, I use the most obvious analogy which clarifies the issues simply: that of our own mortality.
The Compliance Manager’s role in the modern organization is to enable/empower decision makers to take action and leave the building defensive walls to the Risk Manager with his heat maps. So how can compliance managers start realising their value adding role?
With 2015 being the 200th anniversary of the Battle of Waterloo and having a man-crush on Napoleon B, I have taken this opportunity to revisit some of lessons we can learn (good & bad) from his 20 year reign as master of the universe.
- Not being Outcome focused
- Not using Risk base targeting
- Not Value Adding
- Not being timely
An effective Corporate Risk management system (or ERM) requires developing a detailed inventory of all the drivers and influences and how they affect the organisation. It requires a methodical and introspective commitment to fully understand what makes things tick, but as with most things, a bit of effort upfront produces a lifetime of benefits.
Why, with the number of fertile minds that exist in our field, is it still a case of an irresistible force meeting an immovable object. The paradox I believe, like our would-be entrepreneurs, is one of approach.