Monday, March 8, 2010
However, I am equally interested in the non-executive side of the equation. We need NXD's (non-executive directors - if that is indeed a UK-centric descriptor) who are business-savvy, numbers-savvy and now, I would argue, risk-savvy.
I would be interested to hear of examples of non-executive directors who have a business risk background in boardrooms with which you are familiar. Does that work? Do they add value? Is there a role? Do they help deliver the all important assurance environment?
I would also be interested to hear your views as to whether there is a need for what I am calling the r-NXD.
Thursday, February 25, 2010
I have a view that we should be looking a lot more at strategic risk, and I like to tie it back to value drivers (via objectives?) such as those that drive shareholder value (or whatever your equivalent might be for our organisation).
This leads me to pose several questions:
- Do we as a profession have enough face time with the CEO and Chairmen of our organisations?
- Do we get involved in strategic plans before or after they happen? eg, do we get involved in risk based due diligence after the transaction is announced, or when options for acquisitions are being discussed?
- How often do we, as a profession, facilitate board awaydays focussing on more distant strategy (say 5 to 10 years out)?
- Does anyone have any really good war stories on this that you are happy to share on line?
Wednesday, February 17, 2010
A number of things have cropped up over the recent years:
- Clearly Toyota has some "ethical" questions to answer with regard to brakes, accelarators and now steering systems.
- It seems unutterbaly proven that there were dubious (at best) ethics in banking which allowed the situation to arise for the financial crisis.
- A few politicians in the UK have exhibited less than the highest standards in the ethical field.
- Greece (aided and abetted by at least one bank) appears to have been cooking the books, with disastrous consequences for other Eurozone countries.
- BAe has paid a stinging penalty to the US and a modest one in the UK.
- We have a new bribery act coming onto the statute book in the UK (if it gets through before the election).
I believe that risk management can ONLY work where there is an ethical dimension to the organisation. And yet, perversely, this allows free-riding unethical corporations to duck and weave unhindered and leave the ethical corporation trailing - at least for a period of time.
I would welcome people's views on the interaction of ethics and risk management.
As ever, I am likely to turn the discussion into a paper in due course, summarising the contributions - if you are uncomfortable with that, let me know in your response.
Monday, January 25, 2010
Feedback welcome, as always!
I look forward to feedback: I thrive on feedback!