Thread by @SAH16928046

There is an obscure problem when you join the BIG-4 Advisory or auditing, or consulting side of the profession within the services sector.
Most of the co-workers come from an #Accounting background, which makes things awfully difficult to communicate and interpret.

I remember working with an #Audit Expert, having a BIG-4 background.
The chap didn't understand anything except for debit, credit, and fraud risk.
The assignment required to be sophisticated Actuarial Finance, Mathematics, and Econometric Skill Sets to understand the GAPS.

Hence, the biggest problem in the Financial Risk Management, #ERM, Quantitative Risk Management, and other FE Financial Engineering related risk management processes, when working with a #BIG4 Firm, is the interaction with Accountants and Auditors who have their own Lingua Franca

It' classical turf war at work!
Before the formalization & institutionalization of risk management best practices, all risk works were done by accountants/ #auditors
Now we see that they have lost territory to risk managers, who have consolidated themselves outside of Insurance

And this turf war does not exist only between Accountants aka Auditors and Risk Managers!
We see Credit Underwriters, Actuaries from an Insurance Background, Data Scientists, Applied Statisticians, and TQM Experts, all lining up to contest against Risk Management Professionals!

Risk Management of course is not the same across industries
It varies from one business model to another.
But, the office politics and constant bickering and altercations we see between Independent Risk Management Departmental Staff and others, will add to office space complexity

End Result
Silo Culture and isolated islands of specialisms will grow under one roof.
This means when a Crisis led Event transpires, there shall be no coordination among risk staff and the other lines of defence, which will reduce the efficacy and usefulness of any 4T methodology

What is #4T #Methodology?
Appropriate methodical action undertaken against known risks once approval is authorized by the #risk department, which is also referred to as acceptance.
- Treat
- Terminate
- Transfer
- Tolerate
#ISO31000
#ERM

So if a #QRM Professional is working side by side with a #CA/ #ACCA/ #CFE/ #CIA, he or she is bound to get into trouble
The biggest anomaly emerges around the definition of the #GAP.
GAP for an auditor or professional #accountant is not akin to the #taxonomy used by a #Quant/ FE

So, watch out before you sign up as a risk consultant with any BIG4 Style Firm, to do a Risk Advisory, Risk Consulting or related assignment.
Make sure you are not reporting to an accountant or a dumb auditor, coming from a debit/credit background.

Last words on this thread ->
Risk work has many dimensions.
The sooner #CFOs and #CAEs understand that and make space for the #CROs, the better it will be for this firm, which hires the services of professional independent risk management consultants or full-time staff.

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