I recently opened an ISO 31000 Forum discussion on “Does anyone really understand Emerging Risks?” The discussion proved illuminating so in this week’s post I thought I would share a summary of the forum discussion.
Enterprise Compliance Today
Where was the QANTAS Board Risk & Audit Committee during the past 6 years of Alan Joyce’s systematic destruction of, at one-time, one of the world’s leading airlines?
Risk exists everywhere - the problem is knowing what to focus on. ISO31000 definition of risk as “the measure of uncertainty in a situation” hasn’t done a lot to clarify what corporate risk means for Directors providing "good corporate governance".
The “Risk Culture” Myth Part3: The blurring of the difference between Risk Culture & Organizational Culture has had a major detrimental effect on ensuring good governance in corporations. An independent Risk Culture to Organizational Culture is as vital to good governance as an independent judiciary is to good government.
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.
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.
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?
How the right compliance software is improving Resolute's hazard management, administrative processes, audit-readiness, and more
A manager doesn't have to dig in different places for information if her enterprise's database stucture uses the brain as a model. See the difference -- and what it means for you -- in this video clip.