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4 Considerations for Fraud Risk Management

Corporate fraud is a tale as old as time. The total costs of a fraud attempt and the complete set of risks facing a financial institution in the aftermath of a fraud attack often go far beyond the fraud losses itself. That is, organizations must also account for legal costs, investigation costs, reputational risks, as well as eroded confidence and customer loss. An effective fraud framework will include prevention, detection, and deterrence. Organizations often focus on prevention and detection and neglect fraud deterrence, which involves proactive rather than reactive measures. Given the high occurrence and costs of fraud, both financial and reputational, organizations with successful fraud management frameworks in place could have an edge over competitors.

With billions of dollars that can be lost due to fraud, organizations are increasingly concerned with fraud risk management, looking towards a more proactive approach rather than a compliance-driven one. Read on for four important considerations in fraud risk management: Read more

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Top 10 Skills for Succeeding in Enterprise Risk Management

Many have the impression that risk managers just focus on the technical aspects of risk. While the technical is important, it is just one of the aspects in Enterprise Risk Management (ERM). There are many skills needed to succeed in ERM but it is not just about number crunching, ‘challenging’ others, validating internal controls, any form of internal or external auditing, or EHS specialism. ERM is not all about identifying risk either. During our Tea Talk on 16 October, Mr. Ramesh Pillai, IERP® Chairman of the Board of Governors, spoke on the importance of EQ and soft skills in ERM. EQ and soft skills, while often vastly underrated, are what will differentiate the experienced, effective risk managers from the average ones.

These are the top 10 EQ and soft skills a Risk Manager or Risk Practitioner needs in order to succeed in Risk Management: Read more

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4 Ways Risk Management has Evolved

In response to a changing global economy as well as to regulatory and customer demands, risk management has evolved from a reactive and independent function, to one that is increasingly connected to strategic decision-making, with its own developing standards and best practices. In short, risk management has undergone considerable development: broadening its scope from just credit, market, and operational issues. Enterprise Risk Management (ERM) is currently the most advanced iteration of risk management, and seeks to improve on conventional approaches while taking into account current and future needs.
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Global Conference Highlight: Using Enterprise Risk Management as a Strategic Tool

A common excuse given by those who are not convinced of the use of risk management is that there is ‘no time’ for it, especially if management often has to make quick decisions. However, Leonard Ariff Abdul Shatar, Group Managing Director of CCM Duopharma Biotech, notes that many mistakes (and the subsequent costs) could have been avoided if additional thought and effort had been put in. As a public-listed company, it’s a requirement for CCM to have a risk management function. For CCM Duopharma Biotech, risk management was split up as it was thought that the audit function was overshadowing it.

At CCM Duopharma Biotech, Leonard Ariff faced the monumental task of reshaping the business to resolve issues relating to ageing products as well as ageing assets. A key part of the strategy was to move into biosimilar medicine, which is medicine that is highly similar to their reference product (distinct from generics, which are exactly identical to their reference product). In order to build the capabilities required of this endeavor, the company needed to establish partnerships with companies already in the field — CCM had concluded that building in-house capabilities would take 8-9 years. Read more