Executives do not wake up one morning with an urge to collaborate. It is not in their nature.
Yves Doz and Gary Hemel
Alliance Advantage: The Art of Creating Value through Partnering
What is much revealing to the management is the discovery of Top 10 Risks that batters its performance. These risks are computed based on the information collected / polled against each risk. For sake of convenience extraneous risks could be exempted to avoid a skew in the data and results. Thus automatically levitates the importance to attention & control of the identified risks.
This is a display of Top 20 Risks compared against the controls exercised. The difference between the risks & controls reveals the process maturity. In any normal instance the top few risks would be much higher than the controls and thus the difference is leading (negative). Whereas the later part of the risks are well managed through acceptable level of controls commensurate the risks and eventually the difference will be lagging (positive). This helps the enterprise to identify & validate key action areas.
Business Risk Matrix is the correlation of the probability of risks versus their consequence. The importance of this relationship is to visualise the risks in a holistic manner. Size of the bubble indicates the magnitude. Both the probability & consequence are graded as Lo & Hi. Derivative of this information would be used to caution the processes where the magnitude of risks are in consonance with either probability or consequence or both.
This graph reveals the function-wise risk profile of the organisation, mapped based on the individual function’s contribution to handling risks be it the origin function or the control function. This definitely gives a new dimension to risk management and sets the baseline to identify resource & establish requisite controls.
Risk Responsiveness graph indicates the responsiveness of the organisation. This should be viewed in conjunction to the earlier graphs. This may be a surprise to few how come organisations still survive with high risks. The secret is the responsiveness – Reactive Response & Proactive Response. Higher the risks away from the ‘0’ line, better the planning is. Proactive response is a resultant of scientific planning and diligent implementation.
Risks are prioritised based on their urgency and importance to the organisation and its customers. Lesser number of Urgent issues mean better they are managed. More the number of important issues indicate criticality of the process. This means if the risks are managed proactively and mitigated in time, they don’t become urgent and consume productive time of the executives. Even distribution of all risks indicate the organisational planning and control over its activities.
Increasing quest for regulation & automation in governance has put ‘Compliance’ on the top of the board agenda and an important indicator of organisation wellness. Compliance is non-negotiable and noncompliance with regulatory requirements may cost dear. With fragmented structure of legal & regulatory framework in the country makes it an uphill task even for those who morally & consciously wish to maintain compliance at all times. Intensive businesses need a comprehensive manual of operations for effective and flawless conduct of their business.
eGavel is a web based Compliance Management Solution that incorporates all aspects of law, backed by legal experts who incessantly work in analysing their implications and update on the portal. The application of these requirements and compliance are broken down into tasks with due dates for completion, verification and reporting. It also holds Record Management System to manage scanned images of records for ease of reference and to demonstrate compliance and be readily retrievable. Auto escalation and intelligence monitoring system alerts the management of the compliance status and thus pre-empt them for timely actions to maintain compliance. This application can also be sued to build time bound task lists and event based action items, which the organisation may frequently require for their business. We also help organisations to devise a proper compliance system and adopt a compliance manual so that a definite benchmarking is set for an error free business performance. This is preceded by carrying out a thorough study of the business processes on a turnkey basis.
Intuitive Dashboard provides the managers & board with the requisite insight to managing legal compliance with early warning for timely intervention.
Almost all businesses today have established some form of a system (validated or not) to identify and manage risks. International Organisation for Standardisation (ISO) also has adopted the risk based approach to standardisation and effective 2013 all new standards released and those revised adopt the risk based approach to management. With multiple domain expertise managing different risks viz. Quality, HSSE, IT, Customer Loyalty, Corporate Governance, etc. the probability of adopting a non-cohesive approach by implementing multiple ways of risk assessment has a great potential of risk in itself.
IMRA is a web based Risk Assessment Tool that provides a host of features in customising the risk assessment as applicable to the organisation bases on their risk appetite, maturity and business needs. It is built with the capability of assessing the organisation’s risks across all domains of expertise as applicable to the task level for control & mitigation. Threshold levels for risk significance are computed automatically with provision for organisation to determine its own level for control and management. This multi user system enables simultaneous population and risk assessment by user departments with centralised administration control by the executive management.
Intuitive Dashboard provides with interactive reporting features and a historic comparison of risks & trends for choosing the control mechanisms. This aids organisations with articulated data to demonstrate continual improvement in reducing the number of risks, progressive reduction in the magnitude of risks, etc. both internally to the management and externally to the stakeholders, underwrites and conformity assessment bodies. This can also be integrated with eGavel for implementing the risk control & mitigation strategies.
Contact us for a complimentary Executive Presentation on ERM implementation.