The Risk Culture Myth isn't anti risk culture but that it's been hijacked to a belief system. In this 2nd article on the Risk Culture Myth I attempt to re-position Risk Culture back to it its original practical intent.
Enterprise Compliance Today
Risk Culture is the greatest myth perpetrated on business since the Y2K bug. Just like Y2K, an industry has now grown up around it assisting companies to improve their “risk culture”. The problem with “risk culture” is that it has been hijacked from its original practical intent to now being an impossible (and unrequired) philosophical pursuit.
Whilst the IT Industry has to bear the brunt of the responsibility, it is your business and your job that wears the consequences, and therefore it is in your best interest to intercede in the process to ensure your best possible outcome.
Board members need to consider their Risk exposure when considering needs of their organisation's corporate governance. This weeks contribution is by Dr Lee Finniear. Lee is a Fellow of the Australian Institute of Company Directors.
My book providing the best of parts of my 2013 webinar series... plus an addendum with nuts-and-bolts guidance is now available thru Amazon.com.
ISO31000 needs to address the understanding of the fundamental nature of risk if it hopes to advance the maturity of risk practices in business.
Contract Management has all the same components. Financial, Operational and strategic risks, surveillance and KPIs, opportunity and threat management, and most importantly, easily understandable methods of aggregation.
There appears to be a growing view that Risk does not need to be aggregated to have an effective ERM. I believe this is due to a combination of the rush of inadequate software products on the market and the infiltration of Q.A. mentality into ERM.
This week I thought I'd re-print an extract from an interview with Greg Carroll by Greg Hutchins from US based Certified Enterprise Risk Manager® (CERM) Academy, on my upcoming book "Mastering 21st Century Enterprise Risk Management".
Without aggregation, ERM loses any meaning and purpose. (see Why Aggregate Risk in ERM) So if accepting the need to aggregate risk, both from business units to group and between diverse natures of risk, how do you aggregate risks?