It may be a little thing, but having your recommendations adopted is always satisfying, no matter how large or small they are.
In this case I was reviewing the ERM framework for a bank located on a different continent and about to IPO in London, and proposed that ISO31000 be considered as the backbone to the framework, while not forgetting Basel of course) to ensure increased alignment with Enterprise Risk Management standards around the world.
The benefit of this would potentially be improved corporate debt ratings for the bank as ratings organisations are beginning to look increasingly favourably on ERM frameworks meeting this standard. Indeed, a further benefit is that ISO31000 even proposes a standard vocabulary for risk, which is a big plus given how confusing risk management can be when few have the same understanding on what is being discussed.
Now all that remains is to co-develop the total risk framework with the organisation, and then to share the learnings with both academic and business audiences.
In this case I was reviewing the ERM framework for a bank located on a different continent and about to IPO in London, and proposed that ISO31000 be considered as the backbone to the framework, while not forgetting Basel of course) to ensure increased alignment with Enterprise Risk Management standards around the world.
The benefit of this would potentially be improved corporate debt ratings for the bank as ratings organisations are beginning to look increasingly favourably on ERM frameworks meeting this standard. Indeed, a further benefit is that ISO31000 even proposes a standard vocabulary for risk, which is a big plus given how confusing risk management can be when few have the same understanding on what is being discussed.
Sure, there is COSO ERM and Basel, but ISO31000 is explicit about the effect of (any) uncertainty on corporate objectives, which seems appropriate given the state of global economic disequilibrium we currently find ourselves in. In contrast, COSO focuses more on events. While I don't think there's any point in exclusively considering one framework at the expense of another (why not take the best from each where it's best suited, coordinated within a predominant framework), from an entrepreneurial perspective, the risk and return paradigm (uncertainty vs (profit) objectives) seems better aligned to ISO31000 than COSO on its own and maybe that's why so many organisations are adapting their ERM frameworks.
Now all that remains is to co-develop the total risk framework with the organisation, and then to share the learnings with both academic and business audiences.
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