Closer examination

Christopher Riordan  17 September 2008 13:16:17

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!"

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