ceo roundtable protecht pres

8/13/2019 CEO Roundtable Protecht Pres

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Business Risk Management

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David TattamDirectorProtecht

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Perception of Risk Management?

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Hindrance? Enabler?

or

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You do Risk Management anywayBUT….

• Do you do it efficiently?• Do you do it effectively?• Is it a ………….

Risk

Risk: the effect of uncertainty on objectives

Risk Management should be part ofnormal business management

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Risk: things that can stop you succeeding



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What is Risk?• The big hit items – Low likelihood of happening BUT verylarge impact – Natural Disaster: Building fire, Flood, Earthquake. etc.

– Loss of key person(s)

– Failure of IT systems

– Loss of client confidential data and leak to press

– Serious staff injury at work

– External and Internal Fraud

– Serious breach of regulation

• The everyday items – High likelihood of happening butrelatively low impact – cc’d client database of emails to all clients rather than bcc’d

– Staff absenteeism

– Dropping laptop and failure of laptop hard drive

– Duplicate supplier payment

– Accounting posting error requiring a rework

– Marketing material mistake – reprint / embarrassment5

ImpactCause

Events

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Controls

Preventive ReactiveDetective

9Do you have adequate and efficient controls?

Risk Management, notRisk Minimisation

Reward Risk

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How should we manage risk?Line 1: Controls in the business

Line 2: Risk Management

Line 3: Audit

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What is Risk Management?

1. Identifying risks

2. Understand / measure / rank risks

3. Avoiding those that make no sense

4. Managing those that make sense

5. Ongoing monitoring and reporting of key risks6. Ongoing assurance that key controls are

working

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Risk Management is:

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1. Health check (Risk and Controls Assessment)

2. Ongoing monitoring of indicators

3. Managing and recording incidents

4. Compliance attestations and checks

5. Checking of key controls

6. Documenting and implementing improvements

7. Reporting to management and board

Finger on the pulse

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Case Study - Protecht

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Challenges

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1. Moving from small to medium size

2. Expanding to overseas locations

3. Owners needing to delegate and reduce directcontrol



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Solutions

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1. Increase quality of internal controls and policies

2. Implement a risk management layer to allowdelegation and growth while still having finger onthe pulse

3. Consider what a potential purchaser would wishto see as part of due diligence?

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Reporting Dashboards

Some spin-off benefits

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1. Less hassles – less things go wrong. My dull headaches don’t

become migraines

2. Less worry as I know risks are being managed

3. Risk Management system has become main MIS in company

including performance reporting.

4. Minimising key person risk – everything is recorded in the

company’s corporate memory, not the CEO’s!

5. Reduced insurance premiums

6. Used in marketing: Most prospective clients ask about our risk

management

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