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.
Enterprise Compliance Today
Risk Appetite is such a simple concept that everyone thinks they know but invariably misunderstand. COSO and other regulatory requirements for boards to issue a Risk Appetite Statement has led to a belief a business has an overarching level of risk tolerance. Personally I don’t believe these Risk Appetite Statements add any value but regulators are regulators.
We need to discard the continuing archaic attitude to Risk Appetite as a compliance policing action and develop it as a tool of improving management and system performance. In the brave new world of the 21st century volatile business environment not only are the goal posts moving, but the ground is moving under our feet.
The Dept of Defence assesses capability in 7 categories: Purpose, Environment, Organisation, People, Process, Data, and Material. Below I have used this methodology to lay out the guiding principles for achieving a successful Enterprise Risk Management (ERM) system.
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.
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.
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.
What worked well 20 years ago in ERM is no longer good enough to keep you on top. (Second in a series of 4 articles)
Why the very traits we complain about may be the solution to our biggest problem.
The key isn't filling forms, it's tapping into what motivates your employees