Risk management is the most important part of an organization’s governance, risk and compliance program (GRC), according to a survey. When asked to forecast priorities, 33% of respondents stated that enterprise risk management is most important and 27% said ERM would continue to be important to their company. Out of 12 barriers to their GRC goals, organizations identified a lack of resources (52%) and lack of collaboration and cooperation (44%) as their top obstacles.
Last month, the American Customer Satisfaction Index released its latest figures for 190 major brands across all industries. The finance and insurance industries got some good news: satisfaction increased across the sector in 2013. But a careful look at some of the “worst” companies in the survey reveals a trend that may call into question some traditional wisdom on one key risk: reputation.
As Eric Chemi points out in Bloomberg Businessweek, a comparison between these satisfaction scores and 2013 stock returns – factoring in only publicly-traded companies with at least a full year of trading data – shows that customer service scores have no relevance to stock market returns. In fact, when Chemi added a regression line, he found that stock returns actually decreased as satisfaction scores went up.
The slope is minimal, so there is no statistical relationship between the variables, but the trend itself is curious. Clearly, other factors account for the market success of a publicly traded company, and reputation may impact a company’s bottom line off the NYSE floor. This chart does illustrate, however, that good guys do tend to finish last in even the broadest groupings.
So, if reputation doesn’t necessarily impact one major metric of a company’s success, is there a secondary market for being liked? Does reputation make or break other metrics, like net profits or market share? Given that many other studies seem to suggest that reputation does have a negative effect on stock prices, there is likely more at work here.
If everyone had a crystal ball, risk management would be easy. But since there aren’t any wizards or fortune tellers among us (that I know of), we have to rely on forecasts to help guide us. To this end, every year, business consultant CEB develops a list of what they consider the top 10 emerging risk areas that will affect enterprises in the coming year. While the list is primarily intended to help audit teams develop and refine their plans for the coming year, the risks are really applicable to any business unit.
In a new online exclusive article in Risk Management magazine, Friso Van Der Oord and Jeffery Ugbah, directors with CEB’s legal, risk and compliance practice, organize the list into four themes that look at the downside of business interdependence, the balance between control and value, embedding compliance in the business, and organizational blindspots. Their analysis helps put these risk into greater context.
Our current report addresses some well-known risks, such as cyber-security and third parties, but also highlights gaps in companies’ control environment such as inadequate risk management and insufficient crisis response management that may create real blind spots for companies.
Not only do we see changes in the corporate risk landscape, perhaps more importantly we see organizations, despite their best intentions, struggle to maintain effective controls in light of rapid business and regulatory changes.online pharmacy sinequan with best prices today in the USA
For more, you can read the entire article at RMmagazine.com.
Last week was the 20-year anniversary of the Northridge Earthquake. The 6.7-magnitude event that hit on Jan.
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17, 1994 at 4:30 a.m. stands as the second costliest disaster in U.S. history, following Hurricane Katrina. Northridge cost $42 billion in total damages, while Katrina cost $81 billion, according to federal figures.
The U.S. Geological Society (USGS) said that 60 people were killed, more than 7,000 injured, 20,000 were left homeless and more than 40,000 buildings were damaged in Los Angeles, Ventura, Orange and San Bernardino Counties.
The San Fernando Valley saw maximum intensities of magnitude-9 in the areas of Northridge and Sherman Oaks. Significant damage also occurred in Glendale, Santa Clarita, Santa Monica, Simi Valley, Fillmore and in western and central Los Angeles, the USGS said.
Seven freeway bridges collapsed, 212 others were damaged and 82,000 residential and commercial buildings were damaged or destroyed. About 200 steel-frame buildings suffering significant cracking, AP reported. Collapsed overpasses closed sections of the Santa Monica Freeway, the Antelope Valley Freeway, the Simi Valley Freeway and the Golden State Freeway.
The quake resulted in $12.5 billion in insurance payouts. If the event happened today, insured losses would be about $24 billion, AIR Worldwide said.
This was a significant event for me, as I was living in Los Angeles at the time. I had been living there for five years and this was my first, and hopefully last ever, earthquake experience. There had been many false alarms over the years that usually ended up being something like an extra heavy truck rumbling by. But when the real thing happened there was no question that it was, indeed, an earthquake.
Pretty much anything that could have been broken in my place was. Bookcases tumbled over sending contents everywhere. One of my sisters, who lived in Simi Valley, had every cabinet and drawer emptied by the shaking. Televisions, appliances and most furniture were ruined. Because there was no power for days and everyone in her neighborhood risked losing all their frozen food, she and her neighbors came together. They brought all of their grills and frozen food into the middle of the street where they proceeded to cook everything, supplying food for the neighborhood for days. This not only used up any food that would have otherwise spoiled, but it gave the kids a chance to run around and play with their friends and get their minds off of the terrible destruction surrounding them.
Because an earthquake is so sudden and severe, experiencing something like that is a shock to the system and takes a while to get over. Driving through L.A., I saw flattened homes, cars, apartment buildings, office buildings and parking structures.
One big success story and source of pride for Los Angeles was the Santa Monica Freeway, one of the world’s busiest, which had two areas collapse during the earthquake. It was a proud moment when freeway repairs were finished a full 74 days early. It’s a testament to what strong wills, traffic tie-ups and a large bonus will do.
The Los Angeles Times reported:
Spurred by the promise of an extra $200,000 a day for every day work was completed ahead of schedule, the contractor, C. C. Myers Inc., will finish the project 74 days before a June 24 deadline and rack up a $14.5-million bonus for the company.
The high-speed construction was made possible by crews working around the clock, seven days a week, and by state officials cutting through red tape.
“This freeway, with its broken bridges, broken connectors, became one of the most visible signs of the devastation brought upon Los Angeles by the Northridge earthquake,” Gov. Pete Wilson said during a news conference at the freeway.
buy anafranil online www.phamatech.com/wp-content/uploads/2023/10/jpg/anafranil.html no prescription pharmacy“Now its rebuilding and its reopening . . . will serve as one of the . . . symbols of the energy of this great community.”
In Sacramento, Caltrans Director James van Loben Sels estimated that without the accelerated effort the project would probably have taken two years to complete.
But the acceleration did not come without cost. With the bonuses given to C. C. Myers, the price tag on the project rose from the original bid of .
buy zoloft online www.phamatech.com/wp-content/uploads/2023/10/jpg/zoloft.html no prescription pharmacy9 million to nearly $30 million.