Risk Management

Aligning risk management and internal audit functions: The internal audit and risk management functions are two distinct functions, yet both are considered critical components of an organisation’s risk defence system.

Source: InConsult/Council Manager

What's Your Company's Risk Culture?  It's important for directors to understand the risk culture because it influences the decisions of management and employees, even unconsciously.

Source: Business Week

Managing risk in perilous times: Practical steps to accelerate recovery:  This is a briefing paper written by the Economist Intelligence Unit that examines the lessons that have been learnt from the current financial crisis, and proposes ten practical lessons that could help to address perceived weaknesses in risk identification, assessment and management.

Source: Economist Intelligence Unit

How to avoid another failure of risk management:  The failure of financial institutions to manage risk and the role this has played in creating today's economic crises has created awareness of the need for a new risk-management approach. This may well become the new Holy Grail of financial economics. There are two essential constituents: first, developing a more diverse mindset regarding financial risk; and second, applying more powerful techniques to capture financial reality than risk managers have used in the past.

Source: The Times

Those with ERM in place lost considerable capital:  Companies using Enterprise Risk Management (ERM) frameworks lost considerable amounts of capital despite the protective measures in which they had invested, according to Guy Carpenter.

Source: Canadian Underwriter

Strong Risk Management Never Goes Out of Style:  A bank's leadership should take a hands-on, proactive approach to risk management, and make sure its goals and objectives are communicated from the top down. In good times and bad, an effective risk management program can be critical in determining a company’s success.

Source: Bank Director

 Governance & Compliance 

Top 10 governance priorities:  How to reshape the board agenda to respond to more challenging and uncertain business conditions.

Source: Audit Committee Institute 

 Financial Services

APRA joins global banking body:  The Australian Prudential Regulation Authority (APRA) has been invited to become a member of the Basel Committee on Banking Supervision, the global standard-setting body for banking regulation.

Source: APRA

HIH's saving grace:  The idea that HIH saved Australia has not been widely talked about, but it was given considerable credibility when Future Fund chairman David Murray spoke out at the ASIC summer school recently. “The failure of HIH produced an enormous positive return for the Australian economy,” Murray said at the tail end of an hour-long panel discussion on the financial crisis.

Source: Business Spectator

IT security risk management - APRA releases discussion paper:  APRA has released draft guidance and a discussion paper outlining measures APRA regards as sound practice in managing security risks associated with IT, and addresses areas where IT security risk management weaknesses continue to be identified as part of APRA’s ongoing supervision activities.  All organisations, not just insurers will find this publication useful.

Source: APRA

 Can we help?      

If you have any risk management, governance, internal audit or business continuity matters you would like to discuss, contact InConsult on 02 9241 1344.  

 Update

WELCOME: We recently welcomed a number of new clients to InConsult:

• The Institute of Actuaries Australia

• CUNA Mutual

• Bankstown City Council

• Blue Mountains City Council

 GuardianERM.net^®

DID YOU KNOW? GuardianERM.net is a web-based and a complete Governance, Risk and Compliance (GRC) system with an impressive list of features and integrated functions that include:

• Risk Management

• Business Continuity

• Audit (internal audit, quality, compliance)

• Self Assessment

• Compliance

• Incident/Issues Management

• Occupational, Health & Safety

If you would like to find out more, click here or contact InConsult to arrange a demonstration or trial.

Business Continuity and Resilience

Concern over flu pandemic justified:  In a recent speech, Dr Margaret Chan, Director-General of the World Health Organization, told the world not to become complacent about the H1N1 virus.

Source: WHO

Key Voice Over IP related threats:  As more organisations are now using VOIP, understanding the key risks is critical.

Source: Continuity Central

The role of HR in business continuity management:  The Business Continuity Institute has released the results of a survey which looked at the role of human resource departments in BCM. The survey found that 93 percent of respondents believe that HR has an important role to play in business continuity management, but that actual practices differ quite markedly.

Source: BCI

National Emergency Risk Assessment Guidelines:  The National Risk Assessment Framework (NRAF) focuses on risk assessments for sudden onset natural hazards. The first draft of the process and guidelines has been prepared.

Source: IPWEA

 Internal Audit

2009 IT Internal Audit Survey:  The role and importance of IT Internal Audit has taken on heightened significance for maintaining security of commercial data and the reputations of corporate institutions.

Source: KPMG

 Financial Management

Nearly 25% of US Companies May Not Be Going Concerns:  A US research firm predicts 3,589 companies will report that their auditors doubt they will continue as going concerns.

Source: CFO.com

Occ Health, Safety & Environment

Workplace Guide to Managing Influenza Pandemic:  A pandemic will directly affect many people’s health and well-being and potentially all the roles performed in the workplace.  What are your OH&S responsibilities? Do you have to continue to pay wages? It is important that risk managers understand the implications to their organisation.

Source: NSW Department of Commerce

 Government

Draft Investment Policy Guidelines:  Following the loss of millions of dollars by NSW Councils stemming from the decline in the “sub-prime” mortgage market in the USA, the DLG has released draft guidelines to assist councils in investing funds in a prudent and appropriate manner and outline legislation associated with the investment of surplus funds. 

Source: NSW Department of Local Government