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How to Measure your Enterprise Risk Management Effectiveness

http://bit.ly/15Fedth

 

We are often asked for insight on business measures or KPIs for ERM programs to track overall progress and effectiveness.  The key question for risk managers is: how do I measure the value ERM is delivering to my organization?  The following are examples of measures that will quantify and measure the value your ERM program is providing

 

1. Number of systemic risks identified Systemic risk identification will detect areas of upstream and downstream dependencies throughout your organization, such as when one area of the organization is unknowingly causing strain on other areas.  Additionally, this method could also identify areas that would benefit from centralized controls so the extra work of maintaining separate activity level controls is eliminated, increasing organizational efficiency.  

 

2. Percentage of process areas involved in risk assessments ERM is cross-functional in nature and cannot be done in silos. A business is the sum of its parts. The same is true of risk. A risk event in one functional area also affects other functional areas within the business. Process owners own the risk; risk managers own the completeness, timeliness, and accuracy of the risk information.  The more process owners involved in risk assessments, the more accurate and forward-looking the information collected will be, both of which are hugely valuable to the organization.  

 

3. Percentage of key risks mitigated Having a sense of your overall risk coverage is important; however, it is not nearly as valuable as knowing the coverage of your organization's key risks.  Because all risk assessments should be conducted on standardized criteria, you can determine a uniform tolerance, or cut level, throughout the organization based on the resulting assessment indexes.

 

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5 Must Have Characteristics of Enterprise Risk Management Solution

http://bit.ly/1spWmKG

 

Business Risks are the most highlighted topic of discussion in the wake of financial crisis in this decade. There may emerge a number of risk management procedures that keeps on changing over time according to the evolution of risks. Keeping this in mind, organizations are adopting better Risk Management function through various softwares and systems. It is very essential to choose an enterprise risk management solution that provides you effective decisions that will help your organization to grow further. Thus it is required to be able to manage its risks in a world class manner in order to drive value. It is imperative that the operating and executive management committee develops proper vision and nurtures the capabilities for enhanced risk management as an essential part of governance.

 

Ultimately, Risk management is not a concept of avoiding the risks or mitigating them. Correct decisions and risk taken by any enterprise can uplift its risk culture and performance, driving the positive growth.

 

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Risk leadership: Knowledge is Power

http://bit.ly/1xF1oLa

 

When we conduct risk assessments we are often satisfied with the outcomes based on our existing knowledge. Our knowledge however is usually based on some facts and a whole lot of assumptions, perceptions and theories. 

As human beings we use our five senses of sight, smell, taste, touch and hearing to maximise our knowledge about our environment. During a risk assessment we need to find similar tools to make sure we maximise our knowledge to help ensure we identify and appropriately analyse risks, opportunities and design effective risk treatments. Here are a few tips to consider when conducting or participating in your next risk assessment: 

Assumptions - A first point of call is to make sure you identify key assumptions and validate them as well as you can. Beware of senior people pulling rank because they believe this is what worked best for them - it may no longer be valid in our fast changing world. Similarly we can have assumptions that everyone is aware of, but no one in the room can identify where the assumption originated from - you will need to do some digging.  

  

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Risk Managers Why Spreadsheets Are Failing You

http://bit.ly/1qQyMaq

 

While spreadsheets are still an excellent tool for data manipulation and one-dimensional analysis, they fall significantly short of delivering the capabilities a risk manager really needs to analyze trends and see the relationships the job entails.

 

The limitations of spreadsheets verses ERM software are systemic and largely stem from the way they manage data, their inability to easily show relationships, and their general inaccessibility.

 

Impractical

Risk management is an iterative process that requires collecting a great deal of information to glean the necessary insights.  This often results in dozens of spreadsheets and documents each with multiple versions and revisions.

 

Not only does this impede the process of combining data into a coherent big picture, it also means any changes to data structure becomes a great undertaking.  Dependent on spreadsheets, risk managers will spend countless hours validating data, double-checking formulas, and updating values instead of spending that time on much needed evaluation and mitigation.

 

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Risk leadership: How to be Heard

Being a risk leader in your organisation is always a challenge. More than once I have been asked "How do you get a blustering, super confident CEO to slow dow…
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How to Recognize a Phishing Scam

How to Recognize a Phishing Scam | Globalrisk Community | Scoop.it

http://globalriskcommunity.com/profiles/blogs/how-to-recognize-a-phishing-scam

 

So someone comes up to you in a restaurant—a complete stranger—and asks to look at your driver’s license. What do you do? Show it to that person? You’d have to be one loony tune to do that.

 

However, this same blindness to security occurs all the time when a person is tricked by a “phishing” e-mail into typing in the password and username for their bank, or it may be the login credentials for their PayPal account or health plan carrier.

 

Phishing e-mails are a favorite scam of cyber criminals. THEY WORK.

 

When a cyber-thief goes phishing, he uses a variety of bait to snag his prey. Classic examples are subject lines that are designed to get the recipient to immediately open the message and quickly react to it, such as an announcement you owe money, have won a prize or that your medical coverage has been cancelled.

 

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Covered Calls - Shorter-Term Equals Higher Profits

Covered Calls - Shorter-Term Equals Higher Profits | Globalrisk Community | Scoop.it

http://globalriskcommunity.com/profiles/blogs/covered-calls-shorter-term-equals-higher-profits

 

When you write covered calls, you produce greater profits by writing six two-month covered calls per year, than you will realize writing one 12-month covered call per year. Time decay for further-out options is quite slow, so writing options more than few months away is equal to lost time. Based solely on option profits, focusing on short-term ATM or OTM contracts produces annualized double-digit returns.

 

An example of the covered call and how to identify profit, loss and breakeven points: You purchased 100 shares of stock two months ago and paid $54 per share. Today those shares are worth $58 and you decide to sell a covered call with a strike of 60 and expiration in two months. You receive a premium of 3 ($300).

 

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Craigslist encounter ends very badly

Craigslist encounter ends very badly | Globalrisk Community | Scoop.it

http://globalriskcommunity.com/profiles/blogs/craigslist-encounter-ends-very-badly

 

At least one woman is happy that her driver drove like a drunk. That’s because his erratic driving caught the attention of troopers who pulled him over. They then heard a woman calling for help—from the backseat. She was bound and gagged with a bag over her head.

 

The 41-year-old man had posted an ad on Craigslist; he wanted a submissive partner. His phony profile attracted the 22-year-old woman (who I must wonder, why would she be interested in a man who wants a submissive partner? Doesn’t this sound mighty suspicious?).

 

The victim chatted online and agreed to meet him. She thought nothing of meeting him in a secluded, remote location near his home.

 

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Basel 4: The new way to play the dice

Basel 4: The new way to play the dice | Globalrisk Community | Scoop.it

http://globalriskcommunity.com/profiles/blogs/basel-4-the-new-way-to-play-the-dice

 

WikiLeaks last week published more than one million emails from the Italian surveillance malware vendor Hacking Team, shedding further light on the extent of the spying being conducted by governments around the world against their populations.

 

Emails in the searchable database disclose the company’s negotiations with intelligence and police agencies to supply some of the advanced technology used to secretly hack into, take control over and monitor computers and smart phones.

 

In its emails, Hacking Team boasts that its programs can “attack, infect and monitor target PCs and smart phones, in a stealth way” and “bypass encryption, collect relevant data out of any device, and keep monitoring your targets wherever they are, even outside your monitoring domain."

 

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Basel 4: The new way to play the dice

Basel 4: The new way to play the dice | Globalrisk Community | Scoop.it

http://globalriskcommunity.com/profiles/blogs/basel-4-the-new-way-to-play-the-dice

 

In next couple of years there will be sweeping changes to existing Basel III Accord what will pave way for a new game changing regime called Basel 4. In obvious intent, the new Accord will raise risk-based capital ratio, revise risk weighting and move away from too much emphasis on model-based approach. One of key measures will be leverage Ratio.

 

It will stay ahead of 3% ratio as a front-stop measure. Another key measure will be balancing risk sensitivity with simplicity in the new regime. The Basel Committee has already come out a consultation paper on the advantages of greater simplicity which gives the directions how to move out of current high level of complexity.

 

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Managing Uncertainty: Escalating Unknown Knowns (Part 1 of 2)

Managing Uncertainty: Escalating Unknown Knowns (Part 1 of 2) | Globalrisk Community | Scoop.it

Risks are known far in advance by at least one employee – and typically by several – on the front lines of every business. However, problems arise when managers lack mechanisms to escalate and connect their risks with the concerns shared by colleagues in other parts of the organization.

 

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The EU Sows the Seeds of the Greek Economic Crisis

The EU Sows the Seeds of the Greek Economic Crisis | Globalrisk Community | Scoop.it

In sowing the seeds of the Greek crisis, European politicians have made the same mistakes as American politicians before the financial and banking crisis of 2008-09, that is to say encourage excessive indebtedness of some economically weak countries with loan guarantees.

 

What really created the conditions for a major financial and banking crisis in the U.S., starting in 1999 when the so-called Glass-Steagall Act of 1933 was abolished by the administration of Bill Clinton, was the innovation of insurance given to risky loans.

 

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Paint draw pick... To implement risk management across your organisat…

Paint Draw Pick... to Implement Enterprise Risk Management across your Organisation Implement Enterprise Risk Management across your organisation no matter whe…
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Signs You have Malware and what You can do

Signs You have Malware and what You can do | Globalrisk Community | Scoop.it

http://bit.ly/1HMKXzc

 

Not all computer viruses immediately crash your device in a dramatic display. A virus can run in the background, quietly creeping around on its tip-toes, stealing things and messing things up along the way. If your computer has a virus, here’s what may happen:

 

Windows suddenly shuts down.

Programs automatically start up.

Some programs won’t start at your command.

The hard disk can be heard constantly working.

Things are running awfully slow.

Spontaneous occurrence of messages.

The activity light on the external modem, instead of flickering, is always lit.

Your mouse moves all on its own.

Applications in your task manager are running that you don’t recognize.

If any of these things are happening, this doesn’t automatically mean a virus, but it does mean to be on the alert.

 

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How The Full-Grown Quality Company Delivers Superior Performance And Customer Bonding

How The Full-Grown Quality Company Delivers Superior Performance And Customer Bonding | Globalrisk Community | Scoop.it

http://bit.ly/1Grd43R

 

How the Full-Grown Quality Company Delivers Superior Performance and Customer

 

In the full-grown organization executives have a systems view of their organization. They see interrelationships, not things. They manage things and lead people. Change is a mosaic of processes, methods, materials, equipment, work environment and people. The shifting, understood patterns of change are controlled using statistical theory and other quality tools. Controlled not because someone in upper management is atop all the processes and information, but because:

 

· Customers and their requirements are known;

· Processes translating those requirements into action are well defined, understood by all, and improving;

· Self-control and management by fact result from having stable processes (under statistical control), systems, institutionalized key measures; and

· Improvement is continuous--everyone is included and focused on the customer.

 

In the full-grown organization it all begins and ends with the head and tail of the same coin: customer focus, customer satisfaction. The requirements of customers, upon which all are focused, are also measures of satisfaction. Changes in customer requirement, changes in satisfaction change the business of the organization.

 

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Time to tighten up Google Privacy Settings

Time to tighten up Google Privacy Settings | Globalrisk Community | Scoop.it

http://bit.ly/1Jwbyi1

 

There is good news for the tech-unsavvy out there: Google has made their privacy settings easier to work with. This day has not come a moment too soon. “My Account” is Google’s new dashboard.

 

When you use any Google account, the giant company collects information on you. The new dashboard will reveal what information this is. My Account also has other privacy related features; check it out first chance that you get. It has the following three sections.

 

Security

 

-If you get locked out of your Google account, Google will contact you via the phone number and e-mail address you’ll see in this section, and you can change them, too.

-You can look over a list of apps, websites and more that have access to your Google account info. You can place restrictions on permissions.

-Lists devices that have connected to your Google account.

You can change your password.

 

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Short Call Condor Basics

Short Call Condor Basics | Globalrisk Community | Scoop.it

http://bit.ly/1CSCKuf

 

The short call is an intriguing position to open, if only because so many traders see it as way too risky to even consider. But some strategies are perfectly suited to take advantage of two great short call features: offset of risk, and premium income.

 

One variation is the short call butterfly, which employs three strikes. An expansion of this which adds even greater risk spreading is the short call condor. This expands the butterfly by adding another mid-range strike. Thus, there are four strikes overall, with the short side on the highest and lowest side and the long positions in the two middle strikes. Properly set up, this strategy is neutral and the net profit/loss requires movement in either direction. The more movement experienced, the better the outcome. The ideal placement of the underlying price should be halfway between the two long calls, right in the middle of the position. This sets up a short call condor with a short OTM call, a long OTM call, a long ITM call and a short ITM call.

 

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Options: The Box Spread, Both Good And Bad Possibilities

Options: The Box Spread, Both Good And Bad Possibilities | Globalrisk Community | Scoop.it

http://globalriskcommunity.com/profiles/blogs/options-the-box-spread-both-good-and-bad-possibilities

 

Many option strategies are designed to create profit potential and also reduce risk. If you are willing to accept a limited level of both profit and risk, many spreads will do the trick. But these strategies are complex, and might not be worthwhile, given transaction costs and the need to monitor positions constantly. One solution is found in the box spread.

 

Spreads can be broadly defined as bull or bear. Either may be constructed using calls or puts. In a box spread, you combine bull and bear spreads to eliminate risk and create a form of option-based arbitrage. If the net cost/credit of the spread and the expiration profit both work in your favor, then you can realize consistent small profits from these positions.

 

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Risk Leadership: Creating Risk Champions

One approach for embedding a risk management culture across your enterprise is to develop a team of risk champions within your business. What should you expect…
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Risk managers why spreadsheets are failing you

While spreadsheets are still an excellent tool for data manipulation and one-dimensional analysis, they fall significantly short of delivering the capabilities…
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Risk Leadership: Facing Extreme Contractual Liability Risk

"Who is to blame?" How often do we read that line in a newsletter or magazine article about a legal dispute when it all went wrong? Too often, we ignore those …
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Risk leadership - What is GRC?

I just returned from GRC 2012 - The inaugural industry conference bringing together the Australian Compliance Institute and the Risk Management Institution of …
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Breaking down assumptions in risk workshops

Lack of knowledge means more uncertainty means greater risk. Assumed knowledge can be even more dangerous than lack of knowledge and risk workshops are a sa…
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Creating a risk focused organisation by peter chisambara

One of the main challenges facing managers in today's constantly changing business environment is dealing with uncertainty and creating a risk-focused cultur…
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Check out Google's Password Alert

http://bit.ly/1D06f8o

 

Cyber crooks have phony websites that masquerade as the legitimate site you want to log onto. They’ve spun their web and are just waiting for you to fly into it. Google now has Password Alert, which will tell you if you’ve landed into such a non-Google web.

For the Chrome browser, this extension will prompt the user to change their password.

 

When you change a password (regardless of reason) or sign up for a new account and it’s time to come up with a password…don’t just make up an easy word to remember or type.

 

No part of the password should contain actual words or proper names.Each account, no matter how many, should have a different password.If allowed, use a mix of characters, not just numbers and letters.Use a password manager to eliminate the excuse of “I can’t remember a zillion passwords so that’s why I use the same one for multiple accounts.”

 

Even a strong password, when used for multiple accounts, can present a problem, because if that password gets in the hands of a cyber thief, he’ll then be able to access not just one—but all of your accounts with that password.

 

A different password for every account at least means that if any password gets into the bad guy’s hands, he’ll only be able to hack into one account per password.

 

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