Once a month, our Risk Roundup provides a recap of 10 interesting articles and online resources on Risk and GRC that caught our attention. Enjoy the recap for July 2017.
Risk managers can make a crucial contribution to the success of new business projects. All projects involve risk, some more so than others. But risk managers can help in planning for success. Risk should be understood as meaning uncertainty, which covers both threats and opportunities. Inbuilt into every project planning process should be the creation of a project Risk Management Plan (RMP). This article explains how risk managers can help their organizations’ projects succeed. Read more
Organizations face an ever-increasing array of risks that may significantly affect their strategic success. This report summarizes the perspectives of 586 executives in organizations around the world and provides an overview of the current state of enterprise-wide risk oversight. It aims to help organisations to benchmark their relative risk oversight maturity and to highlight opportunities to enhance the strategic value of their risk oversight efforts. Read more
Boards and C-suite executives overwhelmingly see risk as having an important role in value creation, but only 17% of respondents say they are actively using risk to drive returns, according to a new global survey. The survey also found that senior stakeholders want chief risk officers to spend significantly more time playing the strategist role. The survey shows organizations can use risk management to not only protect value, but as a competitive advantage to power performance. Read more
Risk management fails when information is scattered, redundant, non-reliable, and managed as a system of parts that do not integrate and work as a collective whole. The right risk management technology architecture choice for an organization often involves integration of several components into a core risk management platform solution to facilitate the integration and correlation of risk information, analytics, and reporting. Read more
In an ideal world, management and internal audit stand together in a common pursuit to strengthen their organization’s risk management, internal controls, and governance processes. Despite being allies, management and internal audit do not always see eye to eye. Disagreements may be easily resolved or they may be serious enough to impair internal audit’s ability to carry out its mission. This article lists five frequent sources of potential conflicts between management and internal audit. Read more
Changes in project risks are inevitable. As a project progresses, the probability and impact of current risks change, new risks emerge, and residual risks may increase or decrease. How can project managers optimize their risk responses and get the results they are looking for? Read more
A single negative post about a company can go viral and create untold brand damage in a matter of minutes. Despite this reality, the topic of brand reputation is not often addressed in the boardroom unless there is an immediate crisis. In order to effectively advise organizations on how to manage brand risk and reputation in this new digital environment, board directors can tap into chief marketing officer (CMO) expertise, ask the right questions and help oversee the development of risk mitigation plans. Read more
Black swan events are those that are unexpected and have few comparable historic occurrences. But when these incidents occur, the event can have severe, even catastrophic, outcomes. In short, they’re low probability, high consequence. The tricky thing about black swan events is that standard EHS metrics don’t apply. Companies with great safety records could potentially be affected by these events. But outside of the realm of natural disasters, these events can be impacted or partially controlled. Read more
When reputational crises hit, market cap, sales, margins and profits are all on the line. And these situations are becoming more frequent and more costly than ever, with a recent study showing an increase in losses from reputational attacks increasing by more than 400% in the past five years. But it is not only the corporate entity facing challenges, individuals in leadership, especially CEOs, face personal risk as well. Read more
Approximately three-quarters of institutional investors say that risk mitigation is the main driver of their increased interest in environmental, social and governance (ESG) considerations. The main mechanism through which better sustainability translates into better investment performance is not return enhancement, but rather risk reduction. Read more
Visit Enablon Insights a month from now to learn more about what caught our attention in Risk and GRC!