…InTouch

The latest risk management, resilience, audit, governance and compliance news from InConsult.

 

 

  May 2011

Risk Management

Finding the Right Chief Risk Officer: The decision around whether to appoint a CRO (or an equivalent senior risk executive) is driven by factors such as the company’s industry, business model, structure, culture and risks, as well as the extent of fragmented silo activity. Once management has committed to establishing the role, the question becomes: What qualifications should the company consider when evaluating CRO candidates?

Source: Boardmember.com

 

Risk Management Myths Exposed: Like many disciplines, risk management suffers from a number of myths. These myths influence behaviour and present significant barriers when introducing and maintaining an effective risk management

framework.

Source: InConsult

 

Jetstar pilots 'afraid to report risks': JETSTAR pilots are too afraid to speak out about dangerous overtime and fatigue risks because they are worried about losing their jobs, a Senate inquiry has heard.

Source: smh.com.au

 

Thought Leaders on the Supply Chain Risk Management Lessons from Japan's Turmoil: The supply chain impact from terrible damage from the massive earthquake and tsunami in Japan continue to grow, with plant closures both in Japan and in the West due to part shortages stemming from the factory shutdowns in Japan itself, among other problems.

Source: SupplyChainDigest

 

Calculated risk?: The events of the last two years put risk-related issues squarely on corporate boards’ front burner, and the flame remains on high. Board members are proactively rethinking their approach to risk, asking: How does risk inform our corporate strategy? Have we lost sight of the fact that risk is the fuel for reward? Has our risk appetite become too conservative? Has the pendulum swung too far?

Source: kornferryinstitute.com

 

RIMS establishes political action committee: Terry Fleming, the immediate past president of RIMS, is chairman of the RISK PAC trustees committee. The committee, consisting of RIMS members, will govern the political action committee report back to the RIMS board.

Source: businessinsurance.com

 

Disaster Averted: Thanks to the global financial meltdown, we now know what a "black swan" is. But do we know from which direction the next one will swim into view, and what to do when it does?

Source: cfo.com

 

Governance & Compliance 

Japan’s Triple Disaster: Governance and the Earthquake, Tsunami and Nuclear Crises: In the wake of its triple disaster, Japan finds itself at the centre of its most dramatic crisis since World War II. But governance shortcomings may be imperilling the response.

Source: brookings.edu

 

ASIC's governance failure rolls on: The Australian Securities and Investments Commission carries the enormous remit of regulating consumer credit, markets and financial services while exploiting its monopoly power to raise cash for Canberra ($195 million dividend last year, a 34 per cent profit margin) and doing a bit of education and good governance promotion on the side. Too bad this rich revenue source fails basic good governance itself.

Source: smh.com.au

 

Directors have governance concerns too: THE highly regarded Canadian lawyer and governance specialist, Carol Hansell, readily admits that a lot of worthy corporate responsibility issues have been ''talked to death''.

Source: smh.com.au

 

The Bottom Line on Good Governance: A list of seven key board characteristics associated with good governance.

Source: boardmember.com

 

Financial Services

Understanding the Difference Between Risk Taking, Risk Management and Risk Control: Since the full magnitude of the recent financial crisis has become clear, a great deal has been written about how risk management failed us. We hear of purported death knells for quantitative financial modelling, cries of “back-to-basics” and even reports of civil war brewing between the quants and the managers.

Source: quantnet.com

 

Risk Management In Banking Companies: Risk Management in bank operations includes risk identification, measurement and assessment, and its objective is to minimise negative effects risks can have on the financial result and capital of the bank.

Source: financial informations and tips

Insurers may launch catastrophe bonds: AUSTRALIA'S big general insurers are believed to be considering selling their own natural catastrophe bonds as a way to help offset rising reinsurance costs.

Source: smh.com.au

 

Government

Effective Risk Management:  The Auditor-General for Australia examines the practice of risk management in the public sector to see what we have learned, and emerging influences we need to take account of in implementing government programs as we go forward.

Source: anao.gov.au

 

Occ Health, Safety & Environment

Port logistics company convicted after discriminating worker:  The right of workers to speak up about safety without fearing for their jobs has been upheld in the Melbourne Magistrates’ Court, in the first discrimination conviction under the Occupational Health and Safety Act 2004.

Source: safetowork.com

 

Take control and get injured workers back to work:  Every day, Australian employers are faced with the imponderable question: What will I do with my injured worker? All Australian employers, even self-insured employers, are limited and controlled by a statutory insurance regime creating obligations upon employers and employees.

Source: smartcompany.com.au

 

Ten top companies fail disclosure test:  TEN of Australia's largest companies have failed a test of their disclosure of labour practices in sustainability reports.

Source: smh.com.au

 

Company calls for tougher safety rules:  A tougher regulatory framework is needed to reduce the unacceptable level of workplace deaths in Australia, construction group Leighton Holdings says.

Source: smh.com.au

 

Wal-Mart, Crowd Control, and OSHA's General Duty Clause:  The Occupational Safety and Health Administration cited Wal-Mart for one serious violation of the General Duty Clause of the Occupational Safety and Health Act and fined the company $7,000. The company challenged the citation --- at the cost of around $2 million, OSHA estimates.

Source: scienceblogs.com

 

Welcome

We recently welcomed a number of new clients to InConsult:

§  Department of Human services NSW

§  LitSupport

§  Office of Strategic Lands

 

 

Training Calender

15 June 2011

Introductory Risk Management (one-day) This down-to-earth and ‘entertaining’ training program helps to ensure that all people involved in risk management activities in your organisation understand the key concepts of risk management (using ISO 31000), internal control and audit.  This full day course includes an 8 chapter Introductory Risk Management workbook, case studies, a certificate of attainment and 6 hours CPE points can be claimed…more

 

10 May 2011

GIPA in Practice (half-day) The Government Information (Public Access) Act 2009 (GIPA) has come into effect. The new Act will have a significant impact on the way in which NSW Government agencies provide public access to government information…more

 

 

Upcoming Conferences & Events

31 May – 01 June  2011

Fraud Management Conference (two day). IQPC’s Internal Fraud Prevention 2011 Conference in Sydney is your chance to get insights on the latest innovations and best practice strategies for your fraud and risk management and prevention strategies! The Event will deliver you the opportunity to learn from and network with industry leading fraud and risk experts to gain insights, identify opportunities and take away key strategies for successful internal fraud prevention.

To register for this event click here

 

 

Fraud Risk

Australians handing over $1b a year to online        fraudsters:   Australians are continuing to fall victim to online scammers who promise instant wealth but then steal hundreds and sometimes thousands of dollars from their target.

Source: smh.com.au

 

Fraud runs riot as scammers steal $63 million: Scammers ripped off Australians by $63 million last year, with the number of scams reported to the Australian Competition and Consumer Commission doubling.

Source: news.com.au

 

$100m bank fraud plot: two charged: A former Westpac employee and a Sydney fruiterer have been charged over an alleged plan to fleece up to $100 million from customers of the major banks.

Source: smh.com.au

 

Fraud costing Govt hundreds of millions: A new   report has found that fraud cost the Commonwealth close to $600 million in the 2008/2009 financial year. The Australian Institute of Criminology report titled Fraud against the Commonwealth is part of a regular survey of government agencies.

Source: abc.net.au

 

 

Fraud Management Health Check

No organisation can assume that its safeguards against fraud are adequate…you need to know the gaps. Our Fraud Management Health Check is a structured, independent review of your fraud management framework to help give you peace of mind. If you would like to find out more click here

 

 

Web-based GRC Technology

GuardianERM.net is our web-based GRC system with more features to allow people across an organisation to better collaborate, streamline processes and integrate risk, control, audit and incident data to manage risk and improve resilience. It supports best practice standards including AS/NZS ISO 31000, AS 8000, AS 3806, HB 292, ISO 9000.   If you would like to find out how guardian can help you better sustain your risk management framework, click here or contact InConsult to arrange a demonstration or trial.

 

 

Business Continuity and Resilience

10 Steps to Better IT Risk Management: An essential component of any Enterprise Risk Management (ERM) program today is IT risk management. With ever-increasing threats to privacy and information security, companies are looking to strengthen their risk governance processes in many ways.

 Source: bigfatfinanceblog.com

 

CIOs warned to prioritise governance and business continuity: IT professionals have been warned to prioritise ICT governance and business continuity to minimise risk to the business, in the wake of the recent natural disasters plaguing the nation and indeed the world.

Source: cio.com.au

 

Houston, We Have a Problem: Critical NASA Systems Vulnerable: An audit report from the Inspector General for NASA finds that the United States space agency has some serious computer and network security issues that could have compromised missions, or even jeopardized lives.

Source: pcworld.com

 

 

Internal Audit

Internal Auditors Urged to Sharpen Focus on Risk Management: To meet the ever-demanding needs of their stakeholders, today's internal auditors must move beyond traditional internal control and assurance activities and sharpen their focus on risk management, governance processes, and enhanced use of audit technology and automated tools.

Source: cfoinnovation.com

 

Internal Auditors can Expand Roles with Changing Business Environment: As per the seventh annual Global State of the Internal Audit Profession survey, internal auditors can expand their role by aligning their business objectives with new company priorities emerging from the recession.

Source: financial tech spotlight

 

 

Can we help?            

If you have any risk management, governance, internal audit or business continuity matters you would like to discuss, contact InConsult on 02 9241 1344 or email your query to info@inconsult.com.au

 

Your feedback is always welcome 

This publication has been prepared with every care to ensure that the information provided is correct.  It should not be taken to be sufficient for making decisions and you should seek professional advice prior to reaching any decision.

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