Diagnosing the risk culture

Diagnosing the risk culture PowerPoint PPT Presentation


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Introduction. It is important to understand the risk culture of a company.Are people too risk averse?Are they too reckless?Are systems and processes serving their purpose?Are reports telling the truth?. The Risk Exposure calculator. . The risk exposure calculator, developed by Robert Simons gives executives the opportunity to conduct two illuminating exercises. First, managers can ask people at different levels and in different functions within a company to use the calculator- and then 31581

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Diagnosing the risk culture

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1. Diagnosing the risk culture By A.V. Vedpuriswar Based on the article “How risky is your company?” by Robert Simons, Harvard Business Review May-June 1999

2. Introduction It is important to understand the risk culture of a company. Are people too risk averse? Are they too reckless? Are systems and processes serving their purpose? Are reports telling the truth?

3. The Risk Exposure calculator

4. Internal pressures

5. Pressure Points Due to Growth. They may, for example, accept customers with poor credit ratings or cut quality to accelerate operations. And employees can sometimes misrepresent their true performance to cover up any shortfalls against expectations. They may, for example, accept customers with poor credit ratings or cut quality to accelerate operations. And employees can sometimes misrepresent their true performance to cover up any shortfalls against expectations.

7. Pressure Points Due to Culture

10. Pressure Points Due to Information Management

11. The increase in complexity due to highly leveraged derivative financial products - that is, financial instruments whose value fluctuates based on changes in the values of other underlying assets-has caused more than one well-managed company to sustain substantial losses. The increase in complexity due to highly leveraged derivative financial products - that is, financial instruments whose value fluctuates based on changes in the values of other underlying assets-has caused more than one well-managed company to sustain substantial losses.

13. Five Questions About Risk

14. Five Questions About Risk

15. Five Questions About Risk

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