"The Board" their role in relation to Op Risk

After listening to Alistair Darling's and Mervyn King's speeches at the Mansion House Dinner the other evening, it should be becoming clear to all CEOs/MDs/business owners that it is their responsibility to ensure that good practice is paramount in their businesses. Ultimately, in future the "buck" will stop with them. No longer can they shirk responsibility and let their managers take the blame. The Board must have an understanding of what Operations are all about and the Risks associated with them. This was very evident in the break up of the Bank Boards last year. Employees and the public at large have woken up to the fact that leaders need to earn respect and be transparent in their undertakings (we won't mention MPs expenses in this blog...........!), It stands to reason that Boards/leaders need to get this message quickly.
The new plans, mentioned in the speeches, for regulatory compliance can only help the country get back on its feet, but those introducing the changes MUST understand them..............and not be at odds with each other..................!

MP's Expenses - The Fees Office and evidence

From an Operational Risk point of view, it seems hard to believe that receipts and evidence of expenditure do not have to be submitted for certain items of expenditure. This whole sorry debacle serves to highlight the obvious need for receipts or evidence to be submitted by everyone claiming expenses - but perhaps moreso, is the need for those authorising expense claims to be in a position of authority, able to decline expenses when necessary and request back-up information from any employee, whether senior or junior.

Swine Flu - Business Continuity - Insurance

Got it covered? Whether it is as a result of judicious management or an insurance requirement, those of you who have spent time compiling, reviewing and updating your Business Continuity Plans will be glad you have given the latest external event to hit numerous countries. While swine flu is not yet confirmed in the UK, it seems a very real possibility and once again gives us pause for thought. While we cannot stop external events, the ability to mitigate the effect of these is very much in our scope and there is no time like the present ...................

Operational Risk - Fishermen's blockades

It's not just the fishing industry that is affected by the fishermen's blockades but also travellers and various other businesses. The impact on businesses due to staff displacement as well as the loss of perishable goods on lorries stacked on motorways is huge. Of course, those businesses with a robust business continuity plan will have contingency measures in place to mitigate the financial and potential reputational damage caused by the fishermen's actions.

Operational Risk - Internet use

With Easter holidays over, the TV news channels are full of stories that IDs obtained via the internet can be sold by criminals to criminals for as little as 40p. It's not just personal identities which can be stolen, company IDs can be stolen too.
It is essential for all PCs to have a security package loaded. If in business ask yourself the following questions - Who is allowed access to the internet within the office (or remotely)? What software/firewalls are in place to stop "SPAM" or staff using "particular" sites especially webmail/social networking sites? What process is in place to monitor staff usage?
Are you doing all you can to protect your business........................................?

Operational Risk Motivation

By increasing colleague awareness and responsibility for Operational Risk, we hopefully raise motivation levels, especially when effort is rewarded.
Colleagues will always perform better when they see a reward at the end of the tunnel. Right now that tunnel is long and dark. Whilst everyone is cutting costs, it is important to retain reliable and conscientious staff. Reward can take many forms, "thank you" sometimes isn't enough, as being appreciated for going the extra mile means more. e.g. "thank you" from the top boss, a longer lunch hour, bacon rolls at the team meeting each week.............it doesn't have to cost a lot, but effort should be recognised.

Operational Risk - confidential papers

The incident yesterday with Bob Quick has highlighted the importance of keeping sensitive/confidential papers away from public view. At a lower level, care should be taken to not leave papers behind after meetings in restaurants/cafes etc, not to leave laptops/briefcases in the back of taxis after a night out - you get the picture! The information contained on laptops/in papers can affect peoples lives in different ways. Just imagine if the list of names on a proposed redundancy list was emailed to the wrong email group!!! Take care.