Tools and tips for enterprise risk management

Mon, 14 May 2007 20:01:39 -0400

Enterprise risk management is one of those buzzwords that has carved out more corporate mind share in recent years. Executives have always been focused on managing risk, but the process has been "from a reactive exposure-by-exposure standpoint or a silo approach," according to some new guidance from the Institute of Management Accountants (IMA). But in today's climate, most enterprises would be better off with a "proactive, integrated, across-the organization perspective." A holistic view of risk makes a lot of sense, especially from a large branding perspective. In this view, Sarbanes-Oxley-related risk is one set of "risks that exists under a larger umbrella." The IMA has just published a new statement on IMA that includes a lot of tips and tools for implementing such a system. The good news is that they allow financial professionals to really grow, underscoring their value to the organization. A copy of the statement, called "Enterprise Risk Management: Tools and Techniques for Effective Implementation," is available on the IMA website.

For more:
- here's a release

Play corporate politics with Sarbox

Mon, 19 Mar 2007 20:01:39 -0400

Sarbanes-Oxley is a convenient scapegoat in a lot of ways. If a company wants to go private, there's no shame in citing the law. If a CFO wants to step down, he can always say Sarbox has made his job impossible. Exchanges can always blame Sarbox when another listee goes overseas. The list goes on and on. Perhaps you should use this wonderful scapegoat to your advantage. Tim Minahan, a supply chain expert who cut his teeth at Aberdeen, has released an e-book called the The 100 Greatest Supply Management Tips of All Time! Tip No. 11 is a great one: "Create a Crisis: Whenever possible, link your supply management initiative to a top corporate goal or challenge, such as complying with the Sarbanes-Oxley Act or managing risk. This speeds alignment and can help secure executive and stakeholder support." So there you have it. If you want something done, use Sarbox.

For more:
- here's an article from Supply & Demand Chain Executive