Recent major corporate failures and the continual demand for businesses to
drive high performance and deliver shareholder value, have resulted in a
heightened concern and focus on risk management across the globe.
According to Accenture, enterprise risk management is essential to optimise
shareholder return. Effective risk management enables businesses to
identify, categorise, and proactively deal with all risk in an organisation
in order to enhance overall value.
At a recent business breakfast hosted in Bryanston by SAS Institute, Yolanda
Komen, senior manager, Accenture Information Management Systems revealed how
robust enterprise risk management frameworks can be used to identify new
revenue generating opportunities and increase an organisations market
confidence, thereby delivering on shareholder value.
The finance division of an organisation has a vital role to play: not only
anticipating and mitigating financial risk, but also helping to create a
culture that effectively balances risks and rewards, thus maximising the
value of the business.
Enterprise risk management aggregates and analyses data from the entire
company, and provides a range of indicators allowing early detection and
effective mitigation of major risks to the business through Business
Intelligence solutions like SAS. "Products like SAS can really help a
company understand its risk landscape through data mining for example," says
Komen asserts an effective risk strategy should centre on a culture of
communication, such that employees can make appropriate risk-return and risk
There are four main areas of risk, namely credit risk, operational risk,
business risk and financial risk. "Every organisation needs to use
communication as the key to implementing and managing risk strategies, and
this communication needs to come from the strategic level and filter
Accenture has developed specific methodologies, frameworks and processes
that are designed to assist companies when implementing stages of their risk
strategies. Data gathering is the first step on the path to a strategic
roadmap. Several assets form the overall solution – but the Data Quality
"Cockpit" is designed to appeal to the risk management business user.
"Through all the phases of implementation, ensuring access to timely and
accurate information is one of the biggest challenges facing companies,"
says Komen. "Master data management is playing a bigger role to ensure data
is correct, current and consistent."