Using Risk Register To Validate Corporate Performance _ Joachim Adenusi 271016

www.inspirationalrisk.com

The ROI of Implementing Risk Management

How to use risk registers to validate performance indicators

www.inspirationalrisk.com Risk + Story = Risk Edutainment

Jane’s Team Risk + Stories = Risk Edutainment

There are three major business application of risk management: loss reduction, uncertainty management and performance optimisation. The combination of all three is

enterprise risk management ” James Lam


“Objectives are statements of specific outcomes that are to be achieved"

Issues, Problems vs.

Performance

Introduction Goals & Objectives


Decisions

Objectives

Set of goals

Expectations

Time

Dot principle Uncertainties and Decisions

“Even a correct decision is wrong when it is taken too late.” - Lee Lacocca

Outcomes

Performance

Success or Failure

Rewards

“Decisions + Objectives + Time (Dot) = Uncertainties ”

©Joachim Adenusi

©Joachim Adenusi


Risk

“Effect of uncertainty on objectives”

Performance Management

a process by which managers and

employees work together to plan, monitor

and review an employee’s work objectives

and overall contribution to the organization.

What we know


Spot the difference

http://www.cognology.com.au

Org. A = Corporate + Departmental + Individual

Objectives + Indicators + Review


Two reporting tools Risk Register and Performance Scorecard


Risk Register Why Jack sees RR as a burden

• One of the tools for managing risk, so it

can’t be the only tool…

• Too many risks on the register

• Too generic or vague, poor description

• Not relevant to his day to day deliverables

• Too static, not a living document

• Controls/treatments are more like wish list

• Too many columns and not linked directly

to team’s or personal objectives

• Not aggregated and linked to other risk

management tools…

• What else do you think….??


Performance Management Key Indicator’s Scorecard


Performance score card Jane’s need to perform and her approach to deliverables

• Worried about not meeting key deliverables ;

• She knows the impact directly on her appraisals and promotion;

• Numbers don’t lie…the facts are in her

face and the numbers are not adding up;

• Her score card showing her what is not pleasant;

• So it is personal, then departmental and then org wide

• Why is risk reporting not seen like that?


What’s the solution?


Metrics - Target to improve Performance RAG Status

Metrics Risk Status

% Turnover

Reduction in customer complaints

Increase in innovation pipeline

% Reduction in HR costs

% Engagement Score

% Key Positions have a successor

% Capability Gap Analysis completed

% poor performers have a Personal Improvement Plan

Increase in innovation pipeline

What’s the solution? Cont.


ERM approach and maturity….

White Elephant

Which one are you running?

Ostrich

Bear

Tortoise

Eagle


Questions & Contact

15

Joachim A Adenusi Partner – Inspirational Risk

Tel no: +44 7947 182 934 (m) E-mail: [email protected]

Web: www.inspirationalrisk.com @Joachim_Adenusi

@inspired_risk

http://www.google.co.uk/url?sa=i&rct=j&q=question and answer&source=images&cd=&cad=rja&docid=vZQHczFtxuhMYM&tbnid=FF3X5mLAOfOZiM:&ved=0CAUQjRw&url=http://bqxmusic.com/askives-com-resourceful-answers-to-all-your-queries/&ei=-AwKUvzmEMaEO9XYgPAB&psig=AFQjCNE8Jf9sw70kKj-EPwcBrcMQLFSbJA&ust=1376476163319028

mailto:[email protected]

http://www.inspirationalrisk.com/

Using Risk Register To Validate Corporate Performance _ Joachim Adenusi 271016

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