Organizations cannot survive risks unless the management has an insight into the underlying or impending threats. An early warning system is indispensable for any business because it will identify new risks and keep track of the existing risk status. This allows the formulation of effective risk mitigation plans. Key risk indicators (KRIs) play an important…
Bankers have reasons to fear operational risks hovering around their businesses. Any loss caused by inadequate or failed internal processes, people, systems, or by external events, can be classified under operational risks. Basel II has projected seven types of operational risks that banks and financial institutions should bring into focus: Internal fraud – Acts of…
Political instability and unrest is a growing risk factor encountered by businesses that venture into potent or emerging markets. Organizations have witnessed powerful national regimes like Ukraine and Egypt, which were once stable, dismantle rather quickly. The former, renowned for its foreign trade and investment, and the latter as a prosperous tourist destination, lost a…
The pros of using social media are many. Its cost effectiveness and extensive reach have encouraged most organizations (including many tech giants and MNCs) to prioritize the channel for their business strategies. The transition from “strictly no Facebook” to “social media friendly” was a rather quick one for many organizations. Social media helps to augment…
Rating: Enterprise risk management (ERM) solutions, risk indicators, risk taxonomy, SWOT analysis, loss exposure… do you feel mobbed by all these jargons? Already preoccupied with the latest technologies, price fluctuations, market dynamics and altering regulations, are you confident you are not forgetting something important? What really matters, more than any of the so called “requirements”,…
Within months of the financial downturn, regulators began to fortify the financial sector with stress testing. It opened eyes in Wall Street, and many “too big to fail” banks, to perils only they had invited. Initially, regulators faced heavy criticism for the objective and purpose of stress testing. However, Critics are now changing their opinions…
Until a few years ago, risks remained hidden within the walls of departments, and enterprises viewed risk areas independently. Modern Risk Management aims to promote the interconnectedness of risks and controls within business areas; after all, the emergence of a previously undetected risk can sometimes set off a chain of events, which branch out to…
Rating: Risks are inherent principles of business functions and processes. While we have control over some risks, others are just not in our hands. Operational risk is a risk classification on which we have power to a large extent. Assessing and evaluating operational risks is vital. Organizations should develop foolproof assessment programs, as understanding and…
The definition of risk varies from one field to another. Finance, economics, business, engineering, insurance or project management, take any area, they have drawn their own contextual interpretation of risks. Let me ask you a question. What is risk to you? You will notice in your answer that Risks is that which produces an amalgamation…
Rating: Operational Risk Assessments can go haywire because of a number of reasons. And here are a few things you need to set right to eliminate the causes behind failed risk assessments: Building the right risk culture A standard risk language has to be created This common understanding and uniform language also facilitates smooth…
Subscribe To RSS Feeds
