RISK

As a result of the 2008 financial crisis and the following worldwide economic difficulties, companies are facing risks that are increasingly unpredictable and challenging. And it's not just the traditional financial risks that are under scrutiny - so are strategic risk, reputational risk, operational risk, technology risk, and more. This week's articles may help you reconsider whether you're managing risk to the greatest degree possible.

The shift to continuity risk management is one that companies and practitioners can ill afford to deny or ignore. (Item #1)   Records management can offer protection from many risks. (Item #2)   Reduce exposure to loss by managing risk. (Item #3)  

In today's highly connected environment, reputational damage can spread at lightning speed. (Item #4)   Risk-based auditing should truly reflect the realities of the risk environment. (Item #5)   Businesses consider HCR as having the fourth most significant impact of 11 risks surveyed. (Item #6)  

As always, we look forward to hearing your comments & insights regarding business continuity. If you have a topic you'd like us to cover, email me at [email protected].

Bob Mellinger, President
Attainium Corp

1. Continuity Risk Management: The New 'Big Dog'

Continuity risk management (CRM) has been the tail on the disaster recovery /business continuity planning dog for the last 30 years, having been narrowly defined to mean "business impact assessment" or "risk assessment," and only engaged periodically for the purpose of making a business case to spend more money. But there are compelling signals that clearly indicate CRM is now front and center, and traditional continuity programs are falling in line as part of a bigger risk management agenda.
http://www.continuityinsights.com/articles/2011/10/continuity-risk-management-new-big-dog

2. Reducing Risk through Records Management

Records management is often taken for granted or viewed simply as a matter of convenience and organization. But records management programs also can protect an organization from significant risks such as compliance issues, disaster recovery, public relations crises, confidentiality breaches and security threats. A well-executed records management program helps mitigate these risks in much of the same way that legal counsel or an insurance policy does-by acting as a safeguard against unexpected future events.
http://rmmagazine.com/2012/12/12/reducing-risk-through-records-management/

3. Managing Risk in a Volatile Economy

The Oxford English Dictionary defines risk as the possibility of financial loss. In finance, however, risk is mathematically denoted by standard deviation, which has an upside in addition to a downside. Therefore, in a volatile economy, when risk and standard deviation become higher than usual, managing risk also rewards firms more than usual, while those who leave their results to chance become all the more exposed.
http://rmmagazine.com/2012/12/03/managing-risk-in-a-volatile-economy/

4. Risk Angles: Five questions about reputational risk

Ask senior executives which risks concern them most and many are likely to place "reputational risk" near the top of the list. That's because reputational risk is a meta-risk, reflecting the combined impacts of many other types of risks, ranging from supply chain to cybersecurity and beyond. While some organizations address reputational risk primarily by focusing on managing its component parts, we see increasing examples of organizations tackling this risk more holistically.
http://www.deloitte.com/view/en_US/us/Services/additional-services/governance-risk-compliance/risk-angles/37db6ed6a6c55310VgnVCM3000001c56f00aRCRD.htm

5. Why Firms Should Audit Strategic Risk

Many audit departments have underinvested in or ignored strategic risk to their company, instead focusing on smaller financial and compliance risks. The strategic decisions made during this stuttering economic recovery, and the execution of those decisions, will determine a company's successes or struggles for many years to come.
http://www.businessweek.com/managing/content/jul2010/ca2010072_086225.htm

6. Managing Human Capital Risk

Human Capital Risk is a topic that has not been thoroughly researched, but human capital risks can derail the execution of an organization's strategic and operational objectives. The Conference Board conducted research on companies based in North America, Europe, and Asia-Pacific to investigate how the impact of human capital risk compares to the impact of other types of risk and the current state of human capital risk management in those companies.
http://www.poole.ncsu.edu/erm/index.php/articles/entry/human-capital-risk/