Enterprise Risk Management: No Company Is Spared
Category: Risk Management | Jan 12, 2010 |
“Just when you thought Sarbanes Oxley concerns had been sufficiently addressed so that non-public companies could take the issue off their dashboard, things have changed, ” says Gary W. Patterson, Enterprise Risk Management expert and speaker. He forewarns that Enterprise Risk Management (also referred to as ERM) will soon become a business issue for almost every business on the planet, including family-owned businesses, private companies, and nonprofits. This is a strategy shift for many of these organizations, which up until this point thought Sarbanes Oxley (sometimes affectionately known as Sarbox) applied only to public companies, and big ones at that.
One major reason for this sea change in philosophy is that both Standard & Poor and Moody are soliciting comments on their approach to ERM analysis and how they plan to factor it into their ratings. Their discussions will accelerate activity under way where bankers, governmental organizations, and regulators, in particular, have been considering the need for stronger corporate governance. For them Sarbox is an easily obtainable platform to use for drafting programs they believe should exist in corporations directly or indirectly under their jurisdiction. Lest you have any doubts, note how user friendly definitions from Wikipedia describe this trend.
“In business, enterprise risk management (ERM) includes the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ERM provides a framework for risk management, which typically involves identifying particular events or circumstances relevant to the organization’s objectives (risks and opportunities), assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. ERM can also be described as a risk-based approach to managing an enterprise, integrating concepts of strategic planning, operations management, and internal control. ERM is evolving to address the needs of various stakeholders, who want to understand the broad spectrum of risks facing complex organizations to ensure they are appropriately managed. Regulators and debt rating agencies have increased their scrutiny on the risk management processes of companies.” per wikipedia.
Exactly when ERM programs will be implemented is a tougher question. Understandably, non-public companies have a range of reasons for preferring to delay the time when ERM factors will apply to them. However, the question is WHEN – not IF – some form of Enterprise Risk Management requirements will be applied. Family-owned business, other forms of private companies, and non-profits have been forewarned in a number of publications, speeches, and white papers over the last two years.
Some will say that we are drowning in white papers on ERM, corporate governance, Board of Directors, and risk analysis available and dismiss the issue. But those who are proactive, not reactive, will find the time well spent if they begin some level of enterprise risk management dialogue before something critical happens and your company is being second guessed by the ratings agencies, your auditors, or worse yet, a trial attorney.
The topic most companies neglect at their peril is the impact of a fast-approaching clean-energy-influenced economy. Here, we must reassess how much sooner we need to think about a renewable energy world as it relates to areas of your business that will be impacted both positively and negatively, and how that will change your company’s current and long range business plans, including the magnitude of those changes. After all, most C-level executives and their top management teams that I know do not like being second guessed and blind sided.
Watch the video related to risk management
If Craven could get everybody who has weighed in on this debate to go through the exercises in the book, Al Gore should share his Nobel peace prize.” On Amazon: snurl.com Trailer for the book: www.youtube.com What the critics are saying: www.gregcraven.org Download a 25-page preview: www.gregcraven.org In the press: www.gregcraven.org ———- “How It All Ends” Expansion Pack: www.youtube.com … global warming climate change controversy carbon debate risk management most terrifying video …
The two most respected science organizations in the world are both American? Wow, what are the odds?
the debate isn’t if climate change exist or if it is caused by humans but how fast it is occurring and whether or not we’ll experience the effects now or later on in the future. anybody that says otherwise is just plain ignorant and has a bias and shouldn’t be listened to. when new york in the fall feels like California in the spring and there are RECORD BREAKING temperatures… hmmm…who should I believe. and for the religious… The Bible foretold of the ruining of the earth revelation 11:18
I have created a simple, but useful page, which has all the links to this series of videos listed in the correct order.
The site name is of the standard format with the usual (US) extension after the dot. The site name is then followed by a forward slash and the name of the page, so the first word is my site name and the second bit is the page name (but you need to put D O T h t m on the end).
pharmgateway howitallends
what happens to the credibility of a company (or person or what ever) changes their oppinion, says that they were wrong. their credibility (according to you who have given me an opinion) goes up. but what if they are to then again (think about it with and without new evidence) they change their opinion. i can see ppl saying then their original statement is beyond even more credible and ppl saying that company is a load and cant keep their shit together and shuld stop brown nosing whoever
You are right. CAP and trade is lucrative business. It also represents a tremendous concession to industries that emit carbon. A carbon tax has a lot more teeth.
Sure, there is always a possibility that some evil conspiracy is taking place and that what comes out of scientific journals is not objective at all. But when hundreds of other journals that are not at all related to one another basically say the same thing as the NAS, that tends to throw water on the conspiracy argument.
CAP trade is lucrative business for politico-corporate world both in terms of power and wealth redistribution. big corporations calling for increased political action in this field might get all your alarm bells ringing ‘credibility-wise’ rather than put you to sleep… obviously he is oblivious of his own credulity, and the way this conflicts with his attempt at scientific objectivity. the more science becomes ‘establishment’ the more it is inseparably linked to corruption.
it’s also possible that there are no corrupt social woes to coerce people into believing in manmade global warming–peer pressure and simply a “follow the leader attitude” can be just as effective, even in the scientific community. look how this guy is using it! scientists are just as bad at questioning authority and their own belief systems as anyone else is. theyre sometimes more deluded because they believe the integrity of the scientific method guarantees the integrity of its conclusions.
Fuck u Jewishist Jew Shit, filling us with Jewish Controlled Propaganda, Mankind is not Responsible nor is Able to Control Global Warming you insignificant meaningless Parasite, Global Warming is indeed a natural cycle, Instead: Let’s spread the word that israeli jews are Parasites thriving on US taxpayer handouts
Understanding and allocation of risks involved in any investment or work is called risk management. First, you need to do a thorough study of the subject to understand the risks involved. Then for each risk you choose a way to allocate it such as buying insurance or having some contractual obligations for other parties involved in the work or the investment.
If some competent engineer/analyst has done a FMECA or FMEA, an FTA, and other safety analyses. AND, these analyses have been peer-reviewed and corrected (if necessary), then I see no need for further modelling.
If the system in question is dynamic (changing part types, changing design, changing configuration), then yes, an ongoing model with a full-time or most-time risk manager may be necessary.
Even if the risk manager is not doing his/her job, a continuing model wouldn't be necessary. A simple peer review of the existing models and analyses would be all that is necessary.
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http://www.meridianlink.com/articles/security_risk.pdf
http://www.netaddiction.com/articles/eia_framework.pdf
http://www.thefreelibrary.com/Internet+Risk+Impact+Summary+Report+for+Q3+2003-a0113377379
First you need to learn to spell interpretation correctly. Mistakes like that in a resume are really damaging.
You may find a course at a community college. I took one from Dun & Bradstreet by correspondence years and years ago and found it quite helpful.
In business, the term operational risk management (ORM) is the oversight of many forms of day-to-day operational risk including the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Operational risk does not include market risk or credit risk.
Good for you. But there is no such thing as MBA in risk management, or MBA in marketing, of MBA in finance. The MBA is a general broad degree covering a wide variety of business issues and training students for careers in managing any area of business up to CEO. MBA students study accounting, finance, marketing, statistics, management, economics, strategy, policy, leadership and similar courses. The MBA was developed because people with technical backgrounds getting promoted into management are not always able to manage, and people in management often don't understand the technical fields they manage. That's why MBA programs prefer students with degrees in other than business and with 2-4 years of work experience. Their graduates learn to manage and can speak the language of the people they manage, whether that is engineering, chemistry, medicine, music, or any other field.
Many MBA programs offer concentrations, but this usually amounts to 2-3 elective courses in a specific field in the second year of the program. So don't worry about a concentration but be careful in choosing the right program. If you find one with Risk Management courses, consider the quality of the school first, and the concentration second.
Before you consider which MBA program is for you, consult the Official MBA Guide, a comprehensive free public service with more than 2,000 MBA programs listed worldwide. It allows you to search for programs by location (US, Europe, Far East, etc.), by concentration (finance, marketing, aviation management, health management, accounting, etc.), by type of program (full-time, distance learning, part-time, etc), and by listing your own criteria and preferences to get a list of universities that satisfy your needs. You can use the Guide to contact schools of your choice, examine their data, visit their web site, and send them pre applications. You can see lists of top 40 schools ranked by starting salaries of graduates, GMAT scores, and other criteria. It's the best service available at http://officialmbaguide.org.
You'd do a lot better researching the general principles of risk management strategy before asking individual insurers (it's a huge subject)
You can read up on various principles through the IAIS which is pretty much the lead organisation in the world for setting requirements for insurers.
http://www.iaisweb.org/index.cfm?pageID=2
Also ..a personal tip …. although obviously rules are different from jurisdiction to jurisdiction, some of the most comprehensive and yet concise I've seen are the Australian ones (they are very hot on risk management in Aus).
You can read the guidance notes here….
http://www.apra.gov.au/General/General-Insurance-PPGs.cfm
That way you can target your questions and get a much better response
What is Quality Assurance?
The answer will be something along the lines of fitness for purpose.
Also, perhaps you could do a bit of research on the Prince2 project methodology…….it covers all of the areas you are interested in.
We can only hope for the eminent death of Sarbanes Oxley. It has severely damaged the technology start-up market and the financial industry in the U.S. Sarbox is very expensive: including enormous direct and indirect costs to our economy and to innovation. It has not met its goals of improving the quality of auditing or preventing fraud. The effects of this law include fewer public companies, fewer companies going public, more companies choosing to go public in foreign markets, absurdly high auditing expenses and a significant decrease in risk capital.
For More information see Sarbanes Oxley – Is the Medicine Worse Than the Disease – 1 (http://hallingblog.com/2009/06/17/sarbanes-oxley-–-the-medicine-is-worse-than-the-disease-part-1-background/) and Sarbanes Oxley – Is the Medicine Worse Than the Disease – 2 (http://hallingblog.com/2009/06/18/sarbanes-oxley-–-the-medicine-is-worse-than-the-disease-part-2/)
Dale B. Halling, Author of the “Decline and Fall of the American Entrepreneur: How Little Known Laws and Regulations are Killing Innovation.” http://www.amazon.com/Decline-Fall-American-Entrepreneur-Regulations/dp/1439261369/ref=sr_1_1?ie=UTF8&s=books&qid=1262124667&sr=8-1
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