At lunch recently, I opened my fortune cookie and found this message inside: “Any journey must begin with a single step, and you can be the one to take it.” That simple message inspired me to write this blog. Events taking place after the Trump administration withdrew from the Paris climate agreement have demonstrated there…
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Strong organizational governance is a crucial component of sustainable operations, and is defined by the processes senior leadership follows when making and implementing strategic decisions. Without strong governance, it’s impossible to operationalize internal policies, decreasing efficiency, increasing the likelihood of compliance violations, and exposing the organization to unnecessary vulnerabilities. To learn more about how involved…
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This past weekend, news broke of a global ransomware attack that has struck individuals and companies around the world. In the wake of the attack, which has affected computers in 150 countries, many companies are wondering 1) if they’re going to be hit and 2) what they can do to protect themselves. The WannaCry ransomware…
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Read part 1 of this series, “Domestic Political Risk: Operating in the Uncertainty of a New Era.” Here’s Why Compliance Solutions Are Inadequate for Managing Regulatory Changes Regulatory compliance is mandatory, but it’s not the end goal; it’s the minimum operating standard. For strong companies, compliance is a mere byproduct of performing well and…
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Governance is defined by the organizational processes used to make and implement decisions. Good governance is not necessarily making only the “correct” decisions. It’s using the best possible risk management process to inform decision-making, which has the potential to impact employees, customers, other stakeholders, and the community at large. Optimizing organizational governance is not just recommended,…
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For companies that care about their reputation, incident prevention is a must. Said best by Warren Buffet, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Building and preserving that reputation through proactive incident prevention must be a top priority. Post-scandal…
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What Is Domestic Political Risk? Political risk refers to conditions and events that affect organizations and result from governmental decisions. It can have major effects on the profitability/expected value of economic action. Political risks impact individual investors, public and private companies of all sizes, and governments. Starting in 2016, political risk seemed closer to home…
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We are often asked for insight on business measures and key performance indicators (KPIs) that can be used to track overall progress and risk management effectiveness. The key question risk managers should ask is: How do I measure the value ERM is delivering to my organization? The following are examples of risk management metrics that will quantify and measure…
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Cybersecurity vulnerabilities are a concern for every company in every industry. In 2016, 4.2 billion records were stolen during 4,149 reported data breaches. This doesn’t take into account breaches not noted in the public record. According to a Ponemon Institute survey, while security incidents have expensive consequences, costs associated with reputational damage are even greater. That explains…
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ENTERPRISE RISK MANAGEMENT – RUDOLPH Santa Claus sat in his sleigh, filled with presents for children around the world, but the fog and snow were so thick that he couldn’t safely take flight. How was he going to guide his sleigh? Not only was the fog blinding vision, but obstacles of rooftops and snowflakes continually…
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