Some firms may be over-confident that their risk policies are understood throughout the company, whereas in fact education programs for new and existing employees appear to be lacking
Past News ReleasesRSS
Northfield, MN (PRWEB) May 20, 2008
A just-released study by two industry veterans reveals that a variety of governance and risk management approaches are being taken by large firms around the world, belying the notion that applied best practices are well-established.
The study by Michael A.M. Keehner of Columbia Business School and David R. Koenig, head of Ductilibility, LLC, was presented late last month in Chicago at Loyola University.
The recent sub-prime crisis has not only exposed the possible deficiencies in the risk control and management structures, but also suggests a lack of a comprehensive and integrated approach to risk mitigation. The findings, says Mr. Koenig, “are all the more relevant, given the extent to which top-level practices differ, even within the same industry.”
Indeed, the study clearly shows that “a definition of applied best practices of risk management within a governance structure does not yet exist, and there are some gaps in the existing ones,” Mr. Keehner notes.
As long-time financial sector executives, Mr. Keehner and Mr. Koenig have an insider’s grasp of the challenges facing Boards and risk professionals, who are pursuing risk management and governance to reduce the costs of financial distress, develop financial plans and funding for investment programs, and stabilize cash dividends. Besides teaching at CBS, Mr. Keehner serves on the Board of Oppenheimer Holdings and is a former executive and Board member of Kidder Peabody Group. Mr. Koenig is a past Chair of the Board of Directors of the Professional Risk Managers’ International Association, and led the development of three risk management departments.
The study shows, among other things, that, as companies better understand their specific needs and adapt to new demands, substantial changes are occurring in risk management and governance schemes.
However, despite concerted efforts toward elimination of the gaps in risk mitigation practices – as evidenced in the survey -- some shortcomings still remain. “Some firms may be over-confident that their risk policies are understood throughout the company, whereas in fact education programs for new and existing employees appear to be lacking,” Mr. Koenig says.
You can download a full story about the study at https://www.ductilibility.com/uploads/New_Study_Shows_Diverse__Best_Practice__Standards_Within_Risk_Management_Industry_-_Full_Article.pdf
David R. Koenig
info @ ductilibility.com
# # #