The Why, How, and What of Effective Risk Reports

LogicManager CEO and thought leader Steven Minsky will be diving into the “Why, How, and What of Effective Risk Reports” during his session at the RMA’s 2019 Governance, Compliance, and Operational Risk Conference on April 10, at 10:30 AM. 

The board cares about three things: revenue, revenue, and revenue. The fundamental shift in the See-Through Economy has empowered consumers, investors, and employees to easily voice and spread corporate mishaps. What do these trends all have in common? They cause reputational risk, which in turn impacts revenue—a direct concern to the board. In light of the many recent corporate mishaps, boards of directors find themselves looking for the appropriate measures to prevent being in the headlines, and to keep stakeholders satisfied. 

In his session, Steven will explore how increases in corporate scandals across industries have signaled a need for stronger enterprise risk management. The Theranos scandal has especially captured the attention of most boards because it illustrates the fact that boards of directors are no longer only responsible for CEO-level risk activities and decisions; rather, they are accountable for risk at every level.

Boards of directors are calling on risk professionals to provide evidence that an effective enterprise risk management program is in place at their organization, and that risk managers are empowering their business to uphold its reputation, anticipate what’s ahead, and grow revenues. So, how do you convince the board that your risk management program is both effective and worthwhile? Steven’s presentation will teach you how to deliver the objective and actionable insights the board wants to see and connect these insights back to revenue.

So, where does the challenge lie for banks? While typical risk reports are informative, they tend to be focused on one area of the business and lack cross-functionality. Banks face a number of risks and standards whether they are one of the nine risks defined by the Office of the Comptroller of the Currency or regulatory compliance requirements including FFIEC, FDIC, Basel II, and more. These regulations require financial institutions to collect and aggregate information across the enterprise. With an increasingly large amount of data, it’s difficult for practitioners to cross-functionally analyze and connect all the pieces to multiple standards, while also portraying one comprehensive picture of risk. 

What’s the solution? A risk-based approach enables organizations to objectively compare risks across silos and carry out actionable risk reporting. Typical reports can end up lengthy and drawn out, but Steven will provide further insights on collecting the metrics that matter and compiling them into the strategic, colorful dashboards that boards require. Having the ability to drill into the trends is key to demonstrating how key risks may affect the organization’s strategic goals, especially revenue. With the number of scandals cropping up, your board is bound to come around for a debriefing on the state of your risk management program, so it is best to be prepared with the detailed reports to back it up.

LogicManager is a leading provider of GRC solutions, and Steven is the author of the popular RIMS Risk Maturity Model framework and assessment tool. He is also a recognized thought leader, presenter, and writer on the See-Through Economy, risk management, and corporate governance. He has led sessions for a variety of organizations, including the IIA’s All Star Conference and the American Bankers Association’s Risk Management Conference. To learn more about effective risk reports, please attend Steven’s session at the RMA GCOR Risk Management Conference on April 10 at 10:30 AM.

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