Had an interesting encounter with a management consulting firm which wants to set up an ERM Desk for one of its client in the E&P Sector
So I enquired about the client expectations?
Con: Client wants a friendly Risk Dept.
Me: What's friendly?
Con: No authorizations or approvals
So I enquired about the client expectations?
Con: Client wants a friendly Risk Dept.
Me: What's friendly?
Con: No authorizations or approvals
Well, that is the general problem across different industries.
Even in the financial sector, remember meeting a client that wanted me to design the JD of a #CRO who would report to the #CFO.
Another, e.g. where the Risk Manager was made subordinate to the Chief Investment Officer
Even in the financial sector, remember meeting a client that wanted me to design the JD of a #CRO who would report to the #CFO.
Another, e.g. where the Risk Manager was made subordinate to the Chief Investment Officer
Furthermore, they want GRC/ERM or any other Control Staff to be highly understanding of the business process, and remain courteous even if risks are being materialized and losses are mounting
Never work as a Risk Professional where the notion of making a Profit at all costs exist
Never work as a Risk Professional where the notion of making a Profit at all costs exist
Yes, IAD, Risk, Governance and Compliance Teams must not misbehave or report fictitious risks to the Board Committees or the CEO.
That is also unethical!!
And, they should not lose their temper during the engagement process.
But, they cannot become one with the risk taker!
SORRY
That is also unethical!!
And, they should not lose their temper during the engagement process.
But, they cannot become one with the risk taker!
SORRY
A pliant Risk Manager might do more harm than good.
This is what I have studied and seen practically in many countries.
Of course, we are here to support the business side and help turn risks into money-making opportunities, but, at the same time, discourage control violations.
This is what I have studied and seen practically in many countries.
Of course, we are here to support the business side and help turn risks into money-making opportunities, but, at the same time, discourage control violations.
After all, the GFC has taught us many invaluable lessons on how and why risk management systems failed across the first world
The firms involved didn't lack either talent or systems or money to prevent a crisis
It was a man-made crisis due to our animal instincts and selfishness.
The firms involved didn't lack either talent or systems or money to prevent a crisis
It was a man-made crisis due to our animal instincts and selfishness.
I have personally suffered the indignation of not being invited to meetings held by the management at a few firms.
They never wanted to listen to a man with protruding ears.
If you mistreat your control staff/ risk managers, you will FAIL one day as a firm.
They never wanted to listen to a man with protruding ears.
If you mistreat your control staff/ risk managers, you will FAIL one day as a firm.
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