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Services  Quality process-driven risk management |
Most common approach
Risk management is defined as methodically managing uncertainty and threats (accidents, natural, financial or legal causes and disasters as well as deliberate attacks from an adversary). It involves people following procedures (establish context, risk assessment, risk treatment, monitoring and reviewing) and using tools to ensure conformance with risk-management policies, laws and regulations such as the Sarbanes-Oxley Act and Basel II.
Most common approach
As per this definition, risk management is a discipline traditionally thought of as a way to avoid problems, not create new solutions. Hence most companies treat compliance as a costly one-time project. |
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Six Sigma Steps’ approach
By handling risk management issues as business performance opportunities, Six Sigma Steps will help you roll-out Sarbanes-Oxley and Basel II requirements across your organisation as a continuous process. In this way, risk management moves from being an "audit compliance task" to become a "best practice strategy," that aligns data, technology, people and processes across your business.
The methods Six Sigma Steps uses to achieve these goals are a combination of the Hoshin planning operational risk dashboards and Six Sigma to manage the aspects of risk that affect associates, customers and shareholders.
With the help of Six Sigma Steps, your organisation will change from one that is event-driven and consistently putting out fires, to one that adopts the "process way of life" culture.
Using this method will help you reduce operational losses, lower compliance/auditing costs, detect earlier unlawful activities and reduce exposure to future risks.
Deliverables : (only possible if Board commits to treat risk management as a strategy)
- Incorporation of Hoshin planning into regular management routines
- Improvements of key process indicators around operational risk management
- Operational risk process capturing in one hand:
- Reporting spreadsheets
- Meaningful metrics leading to successful strategic execution
- A balanced business scorecard plan
- A performance plan
- Review systems required by Sarbanes-Oxley and Basel II
- Manageable, actionable metrics of the Hoshin plan providing structure and discipline in this highly dynamic environment
- Metrics linked to strategy and day-to-day operations and review
- Management processes focusing on tactical execution of the operational risk plan
- Operational risk process acting as a business risk baseline to easily allow measuring up to the requirements of Sarbanes-Oxley and Basel II
With the help of Six Sigma Steps, your organisation will change from one that is event-driven, to one that embraces change and process as a business culture. |
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