| Critical Issues That Impact Risk Management |
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| Enterprise Risk Management - Sarbanes-Oxley and the SEC are now mandating a top-down, risk management approach to regulatory compliance based on the COSO Framework for Enterprise Risk Management. In spite of real concerns about the dollar costs associated with the SOX, more and more companies are identifying an up-side to their auditing and compliance efforts. Enterprises Risk includes the subsets of Strategic Risk, Financial Risk, and Operational Risk. And, Operational Risk has been defined by the Basel Banking Committee, as: Those risks attributable to people, process, systems, and external events. The process definitions identified under SOX compliance are leading smart companies to identify and shore up their weak, immature processes that are costing the company, and therefore their shareholders. ValuePoint assists companies to identify risky processes and departments and determine cost-benefits of making appropriate tactical improvements. (Read our article on Enterprise Risk Management ...)
Operational Risk Management - There are excellent reasons why operational risks are so costly to business success - and they mostly revolve around human factors. These issues range from simple errors or misjudgments .... to failures to execute process activities consistently. Poor process design, inadequate training in process execution, and disengaged process workers are also responsible for poor performance of any process. An even more problematic risk - but fortunately of somewhat lower probability - is fraudulent behavior. Fraud accounts for approximately 5% of corporate gross revenues on average, according to the Association of Certified Fraud Examiners. In the US alone the cost of fraud is estimated at over $600 Billion per year!
ValuePoint recognizes the untapped potential of addressing these sources of operational risk. We offer risk assessments and intervention strategies to attack risk vulnerabilities at all points of leverage in the process value chain, in order to bring about mitigation or management of each significant risk.
Our services are designed to maximize outcomes, through tactical attention to:
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- People management challenges, such as dealing with the diversity of behavioral and communications styles (More ...)
- Weaknesses in development, coaching and performance reviews that may be encouraging fraud (More ...)
- Human reactivity to change (More ...)
- Structural and cultural weaknesses which may counter stated values and ethical practices (More ...)
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