Fraudulent or corrupt acts may occur in your organisation right now. They may include a wide range of behaviors such as breach of trust, employee misconduct, fraudulent statements, assets misappropriation, criminal offence, and so on. The consequences of those fraudulent activities for organizations can go well beyond the direct financial loss to include regulatory investigations and media embarrassment leading to further damage to reputation, loss of staff’s motivation, loss of customers and ultimately destruction of shareholder value. Continue Reading…
Back in 2008, in the wake of the subprime debacle as the financial crisis was affecting every corners of the world economy, equity-based compensation packages of senior executives and traders in financial institutions came under the scrutiny as one possible culprits for the excessive risk-taking behaviors that eventually led to the financial crisis.
IRONICALLY, equity-based compensation systems and in particular Stock Options were initially devised as a form of risk control to resolve the conflict of interests inherent in the agency problem in organizations Continue Reading…
Tsunamis, oil spills, political turmoil, corporate frauds, terrorism, workplace accidents and health concerns such as pandemic flu, and contaminations are some threats that could affect your organisation and employees leading to disastrous impact on an organisation’s business profitability and even sustainability. Continue Reading…
In today’s world, business leaders talk a lot about ‘ethics’ and ‘values’. When speaking publicly about their organizations, they will usually stress the important role of corporate values in the success of their organisation. To be fair, a lot of efforts have been undertaken around the world to develop ‘values statements’ as well as to translate these moral principles into rules of conducts formalised into codes that are supposed to guide the behaviour Continue Reading…
I would like to recommend a new Textbook recently published by WILEY under the title: ‘ERM – Enterprise Risk Management: Issues & Cases‘. While there are already many textbooks, guides and references available for ERM practitioners, this book is particularly interesting because it aims to provide a different and fruitful perspective not often covered in other publications by Continue Reading…
On 24 January 2013 a dual event was organised by SBF and by SPRING Singapore. The purpose of this event was first to be an award ceremony to present plagues to over 20 companies that are BCM certified in 2011/12 and second the be the official launch of the SS ISO 22301 standard on Business Continuity & Social Sustainability. Continue Reading…
Whenever a large and well-know organization run into troubles, we often hear in the news and read in the investigations reports that there is a “problem” with Corporate Governance, or that more precisely the corporate governance system was somehow “WEAK” in the organization under scrutiny allowing greed and self-interests to go on unrestrained. The suggestion is often that more rules and controls are “needed to prevent this from happening again”. Continue Reading…
When someone does something unethical or even criminal to others, there is a natural tendency to blame the character of that individual and to take comfort in the view that he must just be a “bad apple”. However this would ignore that human behavior is also influenced by powerful environmental/contextual forces. Continue Reading…
“The Impact of RANDOMNESS in Success and Failure is severely UNDERRATED”
When the probability of a Catastrophic Risk to materialize is small.. Actually I mean very very small.. The event is theoretically possible but the probability of it happening is so small that it may not have happened before (at least in human recorded memory). In such a case, the tendency of most people and of the organizations employing them, will be simply to ignore these low probability / very high impact Risks.
Risk Management Demystified 