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| Christopher Riordan 28 October 2008 15:38:25For one moment consider, in the current financial climate, the consequences of the slightest slip up? So with dogs loose, sniffing out prey, why employ methods that expose the business to risk? Madness, oblivious to the consequences or it won't happen to us? Aside increasing the chances of being eaten, this reluctance to change will only lead to the baying for more regulatory controls. Which in a global market, because in reality regulations vary, will probably make us, the UK, that little less competitive? Maybe it's time for business to follow suit and also say "Yes, we can"? Christopher Riordan 23 September 2008 13:08:54Hands up, I'm no finance or Risk expert, but reading between the lines, I refer specifically to the European framework for governing insurance companies in the European Union, it would seem demonstrable and reliable processes has business value! Presumably if an Insurer cannot show documented and reliable practices they are likely to face tougher financial requirements.. So apart from the obvious of saving time and resource, good practice could make the difference between being able to compete (operate) in the market and not? I also suspect, since insurance companies need confidence in the information they are supplied, that these kinds of measures will be passed onto the client. It would make sense to seek reassurance that the methods employed to provide insurance information are reliable. Or otherwise add caveats in the terms of the insurance to mitigate this risk. So again, there maybe financial benefit to a business that can show good practice? Christopher Riordan 18 September 2008 12:57:20"London taxi passengers have left more than 60,000 hand-held devices in the back of black cabs during the past six months, a survey has found" BBC article ( http://news.bbc.co.uk/1/hi/technology/7620569.stm). Nothing new then, lost CDs, USB sticks, Laptops all seem to be regular headline news. If it's not social security details or state secrets, it's something else and then what? We get War and Peace on password protection, using the right kind of software, implementing procedures and practices. None of which is rocket science, but it all sounds like the grief I used to get as a teenager from the parents. I knew they were right but for one reason or another just couldn't be a.s..d It's pretty obvious what needs to be done, the problem I suspect is that we just have to get off our butts and DO SOMETHING! If like the maturing teenager who realises it's about self help and you decide to act, with particular regard to mobile devices, then come and talk to us and we'll show you DME Excitor. Otherwise as my Dad used to say when I ranted on about how unfair it all was, "hard cheese"! PS we won't lecture to you! Christopher Riordan 17 September 2008 13:16:17"Closer examination of the renewal process may reveal why it might make financial and business sense to work smarter..." Cost, without a well defined and structured process, how realistic is your assessment of the time invested to, prepare, maintain and process material? And what of the commitment required of the business to supply the information, or the costs of inaccurate even inadequate data? Speed, with cycles ranging from 3 to 6 months, this suggests some Risk managers, and if not them, then someone, must be working nearly full time on executing and preparing renewals. Not a particularly effective use of valuable resource. And why so long, in an age that expects, demands instant results? Technology, given the scope and power what is exploited is limited to sending emails with attachments! Most renewal processes are manually driven, and an inordinate amount of time is invested in creating, what are for the most part, throw away materials. The format and style of which, varies from cycle to cycle, manager to manager. Compliance, to quote from the UK Risk Management Standard “...a methodical way”, “...well communicated consistent and coordinated processes and tools”, “…Good corporate governance”, “… adopt a methodical approach”. Most renewal cycles are not easily repeated or coordinated and all seem dependant on, therefore vulnerable to, the secret knowledge of a few key individuals! "Apparently it’s 40K (for a medium - large corporate) per renewal cycle, which, in my humble opinion, is wishful thinking. The evidence suggests a much higher figure. But whilst the renewal cycle remains in the shadows the true cost will be just that, a magic number!"
Christopher Riordan 17 September 2008 09:34:54“No matter the technology or your DIY prowess in exploiting IT, a Risk Manager that employs poor practices is making crucial business decisions based on shaky foundations.” Frankly, it’s a waste of time doing any kind of data capture if the process employed is unreliable. Worse than guessing, as at least that comes with an obvious health warning! Bad practice promotes a false confidence that can lead to costly assumptions.
“Not much point in seeking competitive edge, working smarter or trying to be pro-active if you are heading in the wrong direction!” And yet, it would seem many are playing Russian roulette, by doing just that, with activities that are technology naive, labour intensive, error prone and vulnerable to business change. Of course even the best process can output “rubbish”, but a well defined, consistent and coordinated approach will go along way to minimising the risks.
“If accurate, reliable information is an essential component of a coherent risk management strategy, then confidence it how that information has been arrived at must be just as important?” And if you slip up, in these litigious times, when all and sundry will seize the moment to put the business under the microscope, and the competition capitalise on your exposure. Blaming poor practice will do little for your credibility or win you support when you need it most. So clearly a Risk manager has a duty to establish good practice and provide information that is reliable, other wise… In the immortal words of Dirty Harry, "You've got to ask yourself one question: ‘Do I feel lucky?’ ‘Well, do ya…?’ " |
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