New Era of Risk Management

S&P Issues Risk Management Progress Report

stevenminsky — Tue, 28 Jul 2009 07:53:01 -0500

Standard and Poor’s published their progress report on their integration of Enterprise Risk Management analysis into their non-financial corporate credit ratings evaluations. In observing company performance during the ongoing economic and financial difficulties, S&P has noted that effective or ineffective...

SEC Proposes Accountability for ERM at the Board Level

stevenminsky — Wed, 22 Jul 2009 07:45:00 -0500

In my January 2009 blog post, New Congressional Report: A Call to Action for ERM Regulation, I outlined the likelihood of new Enterprise Risk Management regulation and how to prepare for it. As expected, the SEC has acknowledged a lack...

Wake-up Call for an ERM Approach to Business Continuity

stevenminsky — Tue, 05 May 2009 09:54:23 -0500

Corporations have a false sense of security about risk management due to a silo approach in assessing the threats they face. Simply run a Google search for business continuity and swine flu and you will find links to mostly IT related...

New Congressional Report: A Call to Action for ERM Regulation

stevenminsky — Fri, 30 Jan 2009 11:05:52 -0500

Yesterday the Congressional panel overseeing the Troubled Asset Relief Program (TARP) program released a scathing report of the regulatory failures that led to the current financial crisis, Congressional Oversight Panel Special Report on Regulatory Reform. The report concluded “The...

Evidence links ERM directly to improved business performance

stevenminsky — Mon, 26 Jan 2009 10:39:11 -0500

Articles on ERM typically provide valuable examples, but many risk managers have been asking for quantitative evidence supporting ERM standards. With contributions from the RIMS ERM Committee, I developed the RIMS Risk Maturity Model to meet the need of actionable...

Risk Management: Evolve or Step Aside

stevenminsky — Tue, 19 Feb 2008 07:00:49 -0500

The business environment evolves, organizations evolve and people’s roles and contributions must evolve as well. Some risk managers have expressed frustration due to insufficient resources or support from senior management. Risk managers who have an active role in financial reporting...

Global Warming: What does it mean to your bottom line?

stevenminsky — Tue, 11 Dec 2007 07:11:57 -0500

Al Gore received his Nobel Peace Prize on Monday and urged the United States and China to make the boldest moves on climate change or “stand accountable before history for their failure to act.” The cause and effect of global...

The Institute of Internal Auditors: A champion of ERM

stevenminsky — Mon, 29 Oct 2007 12:00:11 -0500

At the recent Institute of Internal Auditors (IIA) event “2007 Risk and Control Conference Featuring Governance, Risk, and Compliance” one of four tracks was dedicated to Enterprise Risk Management (ERM). The role of internal audit has gained in stature as...

New Audit Standard For Financial Reporting

stevenminsky — Wed, 13 Jun 2007 09:27:07 -0500

The approval by the PCAOB Board to the overhaul of the Sarbanes-Oxley legislation on May 23rd has profound significance for the credibility of Enterprise Risk Management as a discipline and its charter for action within organizations. For nearly a decade,...

Information Security and Enterprise Risk Management

stevenminsky — Thu, 16 Nov 2006 09:46:31 -0500

Security of information is critical to all corporations and is one of the many areas of competency established with Enterprise Risk Management. The weakness of traditional risk management is the focus on historical precedence rather than forward looking investigative approach....

Amaranth Advisors revealed; The Emperor has no clothes

stevenminsky — Thu, 26 Oct 2006 09:53:19 -0500

Amaranth Advisors lost roughly $5 billion in a week, and this is from a hedge fund that boasted of world-class risk-management systems. The result is a loss of 50% of the company’s asset base best summarized by this USAToday headline...

The Power of Expert Opinion: A Lesson in Risk Management

stevenminsky — Tue, 17 Oct 2006 09:40:54 -0500

The book “Blink” by Malcolm Gladwell is a must read for risk managers. Chapter one opens with the description of the approach used by the J. Paul Getty Museum to perform due diligence on a famous statue’s authenticity prior to...

BP Oil Pipeline Leak: A Cry for Enterprise Risk Management

stevenminsky — Thu, 05 Oct 2006 09:25:03 -0500

Whenever there is a disaster or event that causes losses, it is usually proven that someone or several employees in middle management or on the front lines had been forecasting the event years before but no action had been taken....

Risk Management: Problems with spreadsheets?

stevenminsky — Thu, 21 Sep 2006 09:20:30 -0500

One of the key challenges within the risk, performance, compliance and business continuity areas of the corporation is the management of data in spreadsheets and other office files, often referred to as unstructured data. Spreadsheet control issues for accounting processes...

Risk Management: What is the role of BPM and Content Management technology?

stevenminsky — Thu, 14 Sep 2006 09:14:34 -0500

In every emerging market the question of build versus buy arises. Enterprise Risk Management (ERM) is no different. Why a purpose-built application in this space? What is the role of enterprise content, workflow and process management technologies? What is the...