From: Advisen FPN: Professional Edition - Thursday, December 09 2010
- (A) renewed zeal for risk management extends far beyond the banking sector. Events such as the financial crisis, and more recently the oil spill in the Gulf of Mexico, have reminded senior executives that failures in risk management can prove to be extremely costly, not just to a companys (sic) financial performance, but to their own careers and, sometimes, the lives of employees. The incentive to ensure that there is a clear and consistent approach to managing risk across the enterprise has never been greater.
The Advisen FPN article is at: Fall guys: Risk management in the front line, http://tinyurl.com/38a7vhv
The Economist Intelligence Unit, which bills itself as "the world's leading resource for economic and business research, forecasting and analysis. Like The Economist, we are independent of all governing bodies and corporations, leaving us free to deliver accurate and impartial business intelligence," created the study for ACE and KPMG.
As with most good news, there was another side to the coin. The study continued:
- "However, although risk management is currently enjoying an unprecedented level of authority and visibility, it remains a function in transition. Examples of companies that take a genuinely strategic approach to their risk management remain few and far between. Communication between risk functions and the broader business can sometimes be fragmented, while an enterprise-wide culture and awareness of risk can be difficult to achieve."
This comes as no surprise to practitioners.
The "things are looking up" news is supported by a recruiter who told me via email that ERM/BC "will be a growth area for next year for anyone with Sarbanes Oxley or financial experience, IT including Java development, Web sphere or Portal on the front end, Oracle PL/SQL on the back end, (and) good analytical skills"
The related questions now are:
For organizations needing our expertise: Will they escape the risks already at their door until they (a) realize the need for our services and (b) manage to get a practitioner on board
For practitioners: Will we be able to survive until the organizations see the light. Peanut butter sandwiches can get awfully boring (but of course they are "better than nothing").
John Glenn
Enterprise Risk Management practitioner
Hollywood - Fort Lauderdale Florida
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