Video & Presentation: http://www.proformative.com/resources/video-presentation-taking-enterprise-risk-theoretical-practical
Risk management has always been an integral part of business. But over the last two decades, a host of corporate scandals, security threats, recessions and a myriad of other crises have pushed risk management to the forefront of business strategy. Organizations are striving to manage and monitor risks more effectively, but many companies can?t seem to get beyond the theory and practically implement an effective ERM program. Join JetBlue Airways and Granite Consulting Group as they discuss practical ways of implementing ERM and how JetBlue evolved their risk program and created a strategically focused risk evaluation process setting the direction for future risk mitigation and operational improvement. Attendees will learn to go beyond linear "top 10" surveys and to incorporate practical and actionable strategies to implement an effective ERM program.
Speakers:
Michael Bechara, CPA, CRMA, Managing Director, Granite Consulting Group Inc.
Luis Fernandes, CPA, Director of Corporate Audit, JetBlue Airways
Presentation delivered at CFO Dimensions 2013 - http://www.cfodimensions.com
Track: Governance, Risk, Compliance | Session: 4
The next myth describes old problem of Analysis Paralysis that seems to take over when performing risk assessmentsGo through mythWe have to remember that point is not to have a process ……but to generate actionable resultsGo through reality
The next myth describes old problem of Analysis Paralysis that seems to take over when performing risk assessmentsGo through mythWe have to remember that point is not to have a process ……but to generate actionable resultsGo through reality
First lets talk about what most people have traditionally done with survey dataMost of us have simply tallied up the votes and appointed a winner95% of people rated Risk A as being most dangerous so….It obviously the most dangerous riskWe need to mitigate this right awayThe reason that so many people have confined themselves to this type of analysis is that its very difficult to manually identify other relationships in the dataThose other relationships are the deeper ones that give us the most value
The next myth describes old problem of Analysis Paralysis that seems to take over when performing risk assessmentsGo through mythWe have to remember that point is not to have a process ……but to generate actionable resultsGo through reality
This slide shows two approaches side by side the bottoms up risk universe and the top down business risk approachWithout going into exhaustive detail we can see the symbiosis between the two methodsExplain chartJoe and I have discussed often how they both can work together to create some really powerful results
The next myth describes old problem of Analysis Paralysis that seems to take over when performing risk assessmentsGo through mythWe have to remember that point is not to have a process ……but to generate actionable resultsGo through reality
The next myth describes old problem of Analysis Paralysis that seems to take over when performing risk assessmentsGo through mythWe have to remember that point is not to have a process ……but to generate actionable resultsGo through reality
We have some additional depth in the mitigation area on this slideSome of the more critical decisions you're going to have to make are…
The next myth describes old problem of Analysis Paralysis that seems to take over when performing risk assessmentsGo through mythWe have to remember that point is not to have a process ……but to generate actionable resultsGo through reality
To drive home this point a little more I have a very short case study I’d like to walk you through
Later in their risk assessment development the company adopted a more business based risk approach
Again in this example we see that there were risks from the bottom of the list that were very relevant to one of the company’s critical objectivesIn this example we also see the concept of risk patterns in play as there are 3 distinct risks that make up the risk pattern threatening this objective
Finally to wrap up back to our little story about JCRome fell in 476 ADThe western world entered the Dark AgesPerhaps thisis sort of where we are today with everyone being frustrated by risk assessment
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with
But there is hopeAs people and companies become more developed and sophisticated when it comes to risk assessment perhaps we will enter an age of enlightenmentPerhaps many will let go of some of the myths in risk assessment and use better approaches and technologies to face some of hard realities that we all have to deal with