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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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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 …

Myths in Risk Management — You Don’t Need to Start with a Risk

Myths in Risk Management -- You Don't Need to Start with a Risk

Recently I was perusing a relatively unknown corner of ISO 31000 Risk Management —Principles and Guidelines— and long dormant memories flooded back.

The ISO section I was reading, Monitoring and Review (s 5.6), deals with the sorts of metrics that should be monitored to ensure the risk management system’s working. For example, it suggests monitoring indicators of control effectiveness, incidents (near misses), issues, key risk indicators, loss events, and other relevant variables important to the risk management process.

Years ago, I was appointed manager of accounting for what was then a mid-sized oil and gas company with operations …