using risk register to validate corporate performance _ joachim adenusi 271016
TRANSCRIPT
www.inspirationalrisk.com
The ROI of Implementing Risk Management
How to use risk registers to validate performance indicators
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Jane’s Team Risk + Stories = Risk Edutainment
There are three major business application of risk management: loss reduction, uncertainty management and performance optimisation. The combination of all three is
enterprise risk management ” James Lam
www.inspirationalrisk.com Risk + Story = Risk Edutainment
“Objectives are statements of specific outcomes that are to be achieved"
Issues, Problems vs.
Performance
Introduction Goals & Objectives
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Decisions
Objectives
Set of goals
Expectations
Time
Dot principle Uncertainties and Decisions
“Even a correct decision is wrong when it is taken too late.” - Lee Lacocca
Outcomes
Performance
Success or Failure
Rewards
“Decisions + Objectives + Time (Dot) = Uncertainties ”
©Joachim Adenusi
©Joachim Adenusi
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Risk
“Effect of uncertainty on objectives”
Performance Management
a process by which managers and
employees work together to plan, monitor
and review an employee’s work objectives
and overall contribution to the organization.
What we know
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Spot the difference
http://www.cognology.com.au
Org. A = Corporate + Departmental + Individual
Objectives + Indicators + Review
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Two reporting tools Risk Register and Performance Scorecard
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Risk Register Why Jack sees RR as a burden
• One of the tools for managing risk, so it
can’t be the only tool…
• Too many risks on the register
• Too generic or vague, poor description
• Not relevant to his day to day deliverables
• Too static, not a living document
• Controls/treatments are more like wish list
• Too many columns and not linked directly
to team’s or personal objectives
• Not aggregated and linked to other risk
management tools…
• What else do you think….??
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Performance Management Key Indicator’s Scorecard
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Performance score card Jane’s need to perform and her approach to deliverables
• Worried about not meeting key deliverables ;
• She knows the impact directly on her appraisals and promotion;
• Numbers don’t lie…the facts are in her
face and the numbers are not adding up;
• Her score card showing her what is not pleasant;
• So it is personal, then departmental and then org wide
• Why is risk reporting not seen like that?
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Metrics - Target to improve Performance RAG Status
Metrics Risk Status
% Turnover
Reduction in customer complaints
Increase in innovation pipeline
% Reduction in HR costs
% Engagement Score
% Key Positions have a successor
% Capability Gap Analysis completed
% poor performers have a Personal Improvement Plan
Increase in innovation pipeline
What’s the solution? Cont.
www.inspirationalrisk.com Risk + Story = Risk Edutainment
ERM approach and maturity….
White Elephant
Which one are you running?
Ostrich
Bear
Tortoise
Eagle
www.inspirationalrisk.com Risk + Story = Risk Edutainment
Questions & Contact
15
Joachim A Adenusi Partner – Inspirational Risk
Tel no: +44 7947 182 934 (m) E-mail: [email protected]
Web: www.inspirationalrisk.com @Joachim_Adenusi
@inspired_risk