Integrated Risk

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Are US Banks ready for Basel III?

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The newly released final rules for capital adequacy for Basel III will be a challenge for banks. Tom Kimner says there are three things you need to do to meet this challenge.

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Pay people to avoid risky behavior

What’s Your Risk Attitude? (And How Does It Affect Your Company?)

How can a CEO influence staff to do the right thing consistently? Safeway has created an environment where its employees are given incentives for managing risk – being risk managers.

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Risk management: A beekeeper’s perspective on risk

A Beekeeper’s Perspective on Risk

Companies differ enough from hives that we’ll probably never be able to do without regulation. Managing for practical scale, long-term success, distributed decision making, diversity and least worst outcomes may be the best hope for keeping organizations healthy.

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Before you take a risk, lay out the logic

Before You Take a Risk, Lay Out the Logic

Risk management predicated on a mix of standardized risk tracking and cultural norms falls short. The only way for risky behavior to create value is if it is logically and precisely directed.

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Your judgment of risk is compromised

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In the past decade, there have been numerous examples of organizations being toppled by a slow progression of risks that add up to big trouble. The reason, according to Dylan Evans, is that people have difficulty dealing with small differences in probability. The key trusting you risk management to analytics, not gut feeling.

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Make everyone a risk manager

Make Everyone a Risk Manager

The University of California has a unique risk management strategy: The Chief Risk Officer gives employees organization wide the tools to manage their own risks. Over the last six years, the program has saved the university more than $500 million.

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Warning signs of an unhealthy risk appetite

Warning  Signs of an Unhealthy Appetite for Risk

Carol Dweck has researched people’s behavior. She says that business leaders who take unusual and unwise risks often share what she calls a “fixed” rather than “growth” mindset. Those with a fixed mindset think they’re infallible and want to show that they’re superior. This mindset can result in a skewed appetite for risk.

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Accountability: Who is responsible for risk management?

What Every Executive Should Learn from Walmart’s Mistakes

Walmart made headlines recently for it’s history of bribing Mexican government officials in order. Then, top executives disregarded the idea of accountability and swept the company’s misdeeds under the rug. This raises the question of who is responsible ultimately for an organization – bank’s – risk management successes or failures.

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How risk reduction is (and isn’t) rocket science

How Risk Reduction Is (and Isn’t) Rocket Science

New findings from the Project Management Institute (PMI) suggest that organizations that focus on excellence in project management execution can reduce risk, improve performance, save money and achieve a greater return on investment.

Finding the value in risk systems

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ROI for risk systems is judged by more than profitability – the amount of risk reduced. David Gumpert-Hersh from Wescom Credit Union says that you also have to look at the opportunities the purchase opens up and the potential for increased productivity.

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Six steps for building a culture of strategic data use

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Since 2006, many boards have appointed chief data officers to work closely with their chief risk officers to evolve the organization’s culture to a data-driven, risk management organization. Read these six steps to help your organization evolve to a successful data-driven organization.

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