Step 4. Allocate weights to each scenario In order to determine the weight allocated to each consequence scenario of events triggered by compliance risk, historical data, modelling, as well as expert opinions, can all be used, individually or in combination. Weight of each scenario can involve the following factors: the range of laws, along with… Continue reading Compliance Risk Management – Risk analysis (part 4)
Compliance Risk Management – Risk analysis (part 3)
Step 3. Determine the range of consequences for each scenario In order to quantitatively assess compliance risks the next step involves defining the possible range of values for each consequence scenario. Typical consequences can involve the following factors: Consequence scenario Range of consequences A. Small fine for violation, for example a fine for three days… Continue reading Compliance Risk Management – Risk analysis (part 3)
Compliance Risk Management – Risk analysis (part 2)
Step 2. Identify causes and consequence scenarios Causes and consequences for the bow-tie diagram are normally derived from the regulations as well as through consultation with risk owners and subject matter experts. Common consequence scenarios for compliance risks (just a quick example, there is more) include: Risk area Examples of consequence scenarios Licensed activities and… Continue reading Compliance Risk Management – Risk analysis (part 2)
Torsten Röhner – Why probability is critical for meaningful financial modelling
Torsten Röhner, founder and managing director of Syconomic, demonstrates why financial models that do not account for probability are virtually meaningless. “Most innovations in financial modelling solve the wrong problem… They solve technical problems instead of overcoming flaws in the methodology,” Torsten Röhner, founder and managing director of Syconomic, told the audience at Risk Awareness… Continue reading Torsten Röhner – Why probability is critical for meaningful financial modelling
Compliance Risk Management – Risk analysis (part 1)
Wherever possible companies should apply quantitative risk analysis to measure and prioritize compliance risks. Wait what? We can do better than a compliance heatmap? Apparently :)) The following information should be collected and recorded for each identified risk: Possible consequence scenarios as described in the legislation or other regulatory requirements (usually includes fines, 3rd party… Continue reading Compliance Risk Management – Risk analysis (part 1)
Compliance Risk Management – Risk identification
Every organisation is required to comply with laws within the countries it operates in, the legal and regulatory requirements vary between different regions adding to the need to have understanding and confidence in the risk management processes in place. Organisations face considerable uncertainty when making decisions and taking actions that may have significant compliance consequences.… Continue reading Compliance Risk Management – Risk identification
Alex Sidorenko – Why businesses and decision-makers must embrace Risk Management 2
One major flaw in the risk management industry is that the commonly adhered to standards and practices are built on theories that have no basis in scientific fact. Indeed, risk managers have become bogged down in appetite statements and risk registers which have little or no bearing on improving actual decision-making. But how have things… Continue reading Alex Sidorenko – Why businesses and decision-makers must embrace Risk Management 2
The story behind RISK AWARENESS WEEK
The Challenge Alex Sidorenko has been working in risk management, a relatively small field in quantitative decision making, for 15 years. His speciality lies in the statistics, math and decision-making disciplines. Travelling to speak at summits was a major part of his role as Head of Risk at large corporations. Besides presenting his risk management… Continue reading The story behind RISK AWARENESS WEEK
Risk is in the eye of the beholder – key risk management lessons from 2020
Sam Savage always says risk is in the eye of the beholder. 2020 certainly proved it once again – while COVID-19 was an ever present risk, it affected everyone and every company differently. At the personal health and safety level, COVID-19 was and still is a serious issue with consequences ranging from mild to deadly,… Continue reading Risk is in the eye of the beholder – key risk management lessons from 2020
Twenty insights that will transform the way you think about risk management (part 2)
At Risk Awareness Week 2020, Julian Talbot, risk author and consultant, shared his top insights from over twenty years in risk management. Anxiety is your friend Talbot says: “A little anxiety is a good thing, it wouldn’t exist if there wasn’t some evolutionary edge from it.” Lesson for risk managers: “You can’t wish away anxiety… Continue reading Twenty insights that will transform the way you think about risk management (part 2)
