Risk Management Workshop on Key Risk Indicators (KRIs) and Risk Framework

Key Thoughts:

The implementation of risk management strategies is more pertinent today than ever before. The speaker, Marc Ronez is well-experienced in this field. His insight and knowledge helps provide the foundation to build a sound risk management framework for the organization.

Summary (sound bites):

- risk assessment is very much sentiment dependant, eg. subprime - 12 months ago, CEO: why aren't we doing more?, now, CEO: why are we in it? - same data, different conclusion

- Risk management sophistication doesn't guarantee safety - eg. Societe General

- tendency to jump to conclusion. CEO: Don't bring me problem, bring me solution. When majority of the report focus on justifying, then it's not risk analysis, it's rationalization

- vast majority of corporate failures is in strategies and implementation, not financial risk

- Business Continuity Planning is part of Enterprise Risk Management, not the other way round

- The most important risk mitigation for charitable organization is REPUTATION!

My Comments:

- PAH does a reasonable done with clinical risk management, but Enterprise Risk management is much broader -- Change the Emphasis.

TO DO LIST

- map risk and choose techniques to mitigate risk

- build Key Risk Indicators into Riskman and SAS FM

- Calculate cashflow to finance potential losses, especially several exposures at once

- setup Risk Register

- build Riskman for decision making

- link Risk Management to incentives payment

- use Event Tree to identify consequences

- derive KRIs and KCIs from KPIs/CSF/KFRIs

- explore further education from Asian Risk Management Institute

Conclusion: a most valuable session to understand the latest thought leadership in Enterprise Risk Management.

Reference: Risk Management Workshop by CCH, 15 December 2008. March Ronez, Asian Risk Management Institute, www.amiri.org.