Blog and Articles

Vision Statement, “A simple ERM solution that helps companies comply effortlessly.”
Good People Behaving Badly

The root of most risk management failures lies in human behavior. Greed, fear, and ego often lead to poor decision-making and unethical behavior, particularly during times of stress or opportunity. Effective risk management requires not only robust systems and processes but also a strong focus on people, culture, and ethics.

Know your KYX

The global regulatory landscape has intensified scrutiny on anti-money laundering (AML) and Know Your Customer (KYC) practices. While these efforts aim to combat financial crime, they have created significant burdens for financial institutions. These institutions often struggle with complex regulations, data quality issues, and resource constraints, leading to challenges in effectively implementing and maintaining robust AML/KYC programs.

Leverage ahoy : Systemic Risk is back

The author argues that leverage is a key driver of systemic risk and that the current rise in household debt, particularly credit card debt, could be a warning sign of potential future financial instability. The author suggests using a simple leverage-based risk indicator to monitor systemic risk and advocates for increased vigilance in the face of growing debt levels and economic uncertainty.

Why the Insurance Industry Needs to Learn from Banking’s Risk Management Nightmares

The financial crisis of 2008 exposed the inadequacy of risk management practices in the financial industry. Banks engaged in risky activities like subprime lending and complex derivatives without properly considering systemic risks. New regulations like Basel III and Solvency II aim to improve risk management by requiring better data aggregation, capital adequacy, and stress testing.

RCSA – Mirror, Mirror, on the Wall

RCSA is a critical risk management tool, but its effectiveness is often hindered by poor execution. Issues such as unclear scope, excessive bureaucracy, and a focus on form over substance can lead to unproductive and misleading results. To improve RCSA, organizations should prioritize clarity, efficiency, and a focus on identifying and addressing real risks.