In today’s edition of Daily Compliance News:
Tag: Risk Management
Director of Advisory Services at SAI Global, James Green, is this week’s guest on the Innovation In Compliance podcast. James’ role involves helping clients manage atypical risk concerns or situations, including business continuity, vendor risk, pandemic, workplace violence, and active shooters. He chats with Tom Fox about his company’s 360° view of risk management and how to survive risks that you never saw coming.
Compliance vs Operational Risk Management
James gives his perspective on the difference between compliance and operational risk management. Compliance, he says, is ensuring that you’re adhering to your own standards, policies, and regulatory requirements. Operational risk management, on the other hand, is mitigating any risk to the company, no matter where it originates. Hurricane Harvey is a classic example of checking all the compliance and risk management boxes, but failing to mitigate the actual risk. Tom comments that compliance and risk management are much closer than just complementary: a combined approach helps a business create a more robust strategy for overall risk management.
360° View of Risk Management
SAI Global advocates a 360° view of risk management; risk and compliance need to be seen holistically. “We believe a company needs to be assessing risk in totality wherever it comes from,” James says. “And it doesn’t matter where it comes from, because the goal is to increase your organization’s resilience, right. That is really the goal of all of our collective functions, is that when there’s a bump in the night, we can manage through it successfully, legally, ethically, to the satisfaction of our stakeholders.”
When Things Go Bump In The Night
Tom comments on SAI Global’s real-time risk management approach. He asks James how it allows an organization to be more agile and responsive to market conditions as they come up. James responds that while compliance and risk professionals are great at mitigating issues that just happened, they need to also be aware that there will always be unknown and unanticipated issues. “…The problem is in our world, there’s always an unknown that’s coming up. Right now we’re living through COVID-19 which was unknown to a lot of us,” James points out. “There’s always something that’s gonna happen. There’s always another bump in the night. So you can’t be planning based on what happened in the past. You need to be agile. You need to be nimble.” He gives tips on how to determine if a risk is strategically acceptable, and the role risk management should play in the corporation.
COVID-19 and Supply Chain
They originally saw COVID-19 as a supply chain issue, James says, and started advising their clients about it in January. It became much more than that, he remarks. “Supply chain really needs to be embedded in your risk model… because it can damage what your suppliers and vendors do, it can damage your brand to your customers.” He shares useful COVID-19 resources that his company has made freely available to the public.
Resources
SAIGlobal.com
COVID-19 Resources
James Green on LinkedIn | Twitter
In today’s edition of Daily Compliance News:
- What to do when the founder is toxic? (New York Times)
- Michael Senna informs 3rdparty risk management. (Wall Street Journal)
- Exxon sues Cuban companies for expropriation. (Wall Street Journal)
- Model airplane enthusiasts stop drone delivery. (Financial Times)
In this podcast series, recovering screenwriter (and Mr. Monitor) Jay Rosen and myself will indulge in passion for the movies by looking at them through the lens of compliance. Jay is a contemporary movie fan and I am more of a classic movie maven so we present a well-rounded view of the movie fandom. If you want to indulge in your love for the movies with two guys who are passionate about Hollywood and get some ideas for your compliance program, this is the podcast series for you.For this week’s offering, today we look at the Marvel-universe hero, Captain Marvel.
Some of the highlights include:
- What is the backstory for Nick Fury and Phil Coulson?
- How and why did internet trolls tried to sabotage the film?
- What was the response of Rotten Tomatoes?
- How were Eggs used to great effect?
- The special effects and battle scenes were great.
- Who was honored in different scenes in the movie?
- Jay gives the movie not only a full bucket of popcorn but as second bucket as well. Tom joins with an overflow bucket of popcorn.
The Compliance takeaways:
- Understand where you come from, know your business inside and out.
- Nick Fury recognized a new risk-do you have a trip system for new risks in your organization? Do you have a seat at that table?
- How and why did Nick Fury lose his eye? How do you assess known strategies for unknown risks?
- Get out of the corporate office and into the field to meet your employees.
- Take action, when needed to change the balance.
- As a CCO you may have to take a stand.
Legal Risk Management Specialized Studies Certificate Program for UCI Extension, where she teaches for that program and the Contract Management Certificate Program. She has published articles on various business law matters, most recently for the National Contract Management Association’s Contract Management Magazine May 2015 issue, as well as for the National Center for State Courts and the Aerospace and Defense Forum. Every corporation and compliance practitioner faces a wide variety of risks. These include regulatory risks, legal risks, reputational risks, safety risks, environmental risks, and many other types of risks. We consider whether there is one process or approach to take to the over-arching concept of risk management or if the approach needs to be fined tuned by an organization. We discuss the Legal Risk Management Specialized Studies Certificate Program, including the program benefits and who should attend. We explore the approach to teaching risk management. We discuss some of her current initiatives on the study of and teaching of risk. In this episode, I discuss with Virginia Suveiu the theories of risk and the process of risk management.
