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The Decision Factor offers insightful comments and observations on analytics—from views on new technology approaches and market dynamics to the latest industry trends driving demand for faster, smarter information analysis. This blog contains personal views, thoughts, and opinions from SAP employees, mentors, and friends working in the area of analytics. It’s not endorsed by SAP nor does it constitute an official communication of SAP.

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Risk Management Is Only for Big Companies

mountain climber on snowy peak

Now there’s a sentence I have heard many, many times! I believe this assumption comes from the association that risk management equals management of compliance risks, which applies mostly to regulated companies or public companies.

As we’ve already discussed many times in these blogs, this is a misconception – compliance risks only compose one risk category that deserves to be managed. It certainly doesn’t define a complete risk management scope.

All companies manage risks since they’re inherent to any production or service delivery activity. For instance, small and medium enterprises (SMEs) might manage:

Treasury risks: suppliers and employees aren’t …

Why Speed Matters to GRC

people moving quickly in a station

The Art of Speed: 2009

About five years ago, I was sitting beside a pool in Palm Springs while on a winter vacation when my phone rang. It was one of my credit card providers calling to tell me my credit card had been stolen. That’s right, they were telling me – not asking me.

They explained that over the previous four days, my card had been used at a college bookstore and a college pub, and several other places I had not ever frequented, even though I routinely traveled around the world on business. The expenditures were modest, probably …

GRC and Golf: Games of Honor

golf ball lies at edge of hole

I was sitting in my backyard yesterday, which overlooks a golf course in Anthem, Arizona, and my mind was wandering as I thought about the topic for my next blog. Just for the fun of it, I thought about some key aspects of golf that might be applicable to governance, risk, and compliance. If you are a golfer, you’ve probably heard some of this before—but I’m guessing you’ve never heard this applied to GRC.

Perhaps the US Golf Association (USGA) says it best in an excerpt from The Human Element:

“Golf is …

GRC Is NOT My Life

woman uses mobile GRC app

My Fictional Day Begins…. By Carla

After I drag myself out of bed and finish my morning ablutions, I sit down with coffee and cereal to read the latest Federal Register followed by Compliance Today and a few industry publications. I make notes as I go of any regulation changes relevant to my job. You see, the company is extremely interested in avoiding compliance risk—and to be honest, it makes my work life miserable.

Oh, pardon me, I should introduce myself. I am Carla Franco, a working manager of a purchasing team within a large global enterprise. I can’t …

Everything I Know About Key Risk Indicators I Learned in Middle School

Firefighters on the Job

A number of years ago, while living near Houston, Texas and working for a major oil company as an audit director, I joined the local volunteer fire department in my community.

As a new member, I was assigned the task of carrying out a fire inspection at our local middle school. I was part of a team that included more highly-trained fellow volunteers.

Auditing Fire Risks

Being an experienced auditor, I was certain I was up to the task. I knew all about controls and I thought that knowledge would come in handy. My plans were to meet up …

Effective Anti-Bribery and Anti-Corruption Programs – Must They Remain Illusions, or Can They Become Allusions of Success?

bribery

Often, when looking at historical events and time periods, I try and imagine what it would have been like to live then and to have my perspectives influenced by the opportunities and challenges of the day. What would have been my reactions, for example, to experiencing the Prohibition of the 1920s, to having the Bible made available to the masses, to living under fascism, or to seeing the end of slavery?

Not having lived during those times, it can be easy to make allusions (or casual references) to the difficult and challenging periods as if they simply live in …

Fraud Attacks Come From Unexpected Places – Can Predictive Analytics Help?

fraud and predictive

Recently, I had a chance to watch one of those old, French cult movies of the 60s from the recently deceased director Georges Lautner (an institution in France) entitled “Ne nous fâchons pas” (Let’s not get angry).

In one scene, the main male character seeks to engage in business with a rich (and wary) heiress. To gain her confidence, he tells her: “People always tend to see gangsters as stocky, dark-haired guys. It’s the silliest prejudice!” To which she answers, “And I have another one for you—they tend to think that a tall, blond woman is inevitably daft… Missed!”

The Critical Role of Marketing Executives in the Risk Management Process

617062.TIF

From my experience, marketing executives are often involved in the risk management process quite late – usually to manage the communication aspect of a crisis. Therefore, they’re only involved when the risk has transformed into a critical incident and the company is in a defensive mode.

I strongly believe that marketing executives can bring a lot to the table for a proactive risk management approach. This would notably help in monitoring the reputational risk and protecting the brand from adverse events.

As we all know, communication channels have exponentially expanded in the last few years to reach volumes that …

GRC Software Selection and Implementation: Are You Designing the Automotor Horse?

automotor horse

What IS an automotor horse, you may ask, and what does it have to do with governance, risk, and compliance (GRC)? First, let me share a little background.

The automotor horse was an invention credited to M. Emile Langrenne, as described in British Invention. The newly developed automobile, described as “a vehicle in search of a horse,” apparently had caused some sense of loss and discomfort among those who would prefer to keep their existing carriages. Today, we might label these people as change-averse.

Enter the automotor horse, for which a patent was filed. The automotor horse was designed …

Top 10 Benefits of a GRC Software Solution vs. Office Tools

Businessmen Looking at Computer Monitors

In a recent client presentation, I was asked by the compliance team what I thought were the benefits of using a software solution versus office tools, such as spreadsheets, that were already used internally and that everyone knows how to use.

Whatever the topic (this of course includes GRC), most software solutions are compared against office tools such as Microsoft’s Excel or Word. And it’s true, most companies have started their governance, risk, and compliance (GRC) journey using these tools, and even created shared drives on networks or intranet sites, macros in Excel, or dedicated Access databases and even …