Something to Consider November 2017 4
Enterprise Risk Management – “From Fact to Act”
There is a growing interest in, and application of, a more holistic Enterprise Risk Management (ERM) approach that supports enhanced management decision making across the organization.
Much current practice applies risk management thinking in silos, limiting opportunities for broader business effectiveness and, of course, efficiency.
In addition to functional silos, much current practice also isolates risk identification and risk assessment from the specific day-to-day monitoring of risk related activities.
Furthermore, much of today’s monitoring remains largely manual, often periodic management judgements or assessments that are hopefully recorded, correlated and acted upon.
The future is becoming clearer.
Integrating genuine ‘enterprise’ wide risk management with policy management, controls design, implementation and continuous assessment/monitoring, AND detailed analytics on daily risk related activities creates a genuinely holistic end-to-end process that can transform risk management, performance and related management decision making across the business.
We can now integrate strategy, operations, fact and action in a truly meaningful way. Some organisations are on the march already.
The world is moving from an “Assessment to Judgement” oriented process, towards this “Fact to Act’ model.
We have shared our thoughts with the help of the “impossible waterfall” courtesy of the artist and master of illusion, M.C. Escher. Read the rest of the story here
Our ‘Something To Consider’ snippets are framed as small, digestible, ‘dashes of insight’ around the pillars of what we define as “World Class Finance” – Process Optimization, Financial Control and Compliance, and Risk Assurance, all underpinned by technology enablement and integration.