The “Three Lines of Defense” theory to risk management is very much in vogue today, along with maturity models to understand how strong your risk management program is. This week, columnist Rick Steinberg takes both ideas to task. The three lines concept too often paints risk as something to be extinguished at all times, he says, while maturity models can become a crutch preventing you from achieving the strongest risk management possible.
Richard M. Steinberg
Posted inFrom the Archive
The Logic Behind COSO’s ERM Framework Update
Even as compliance officers are still digesting the updated COSO framework for internal controls, COSO has set its sights on what’s next: an update to its enterprise risk management framework, likely to arrive sometime in 2016 or so. Why ERM? Why now? Inside, Compliance Week columnist Rick Steinberg walks us through the various rationales—none of which, he writes, portend terrible heartburn for corporate compliance departments.
Posted inBoards & Shareholders
A Sad Day for Integrity and Ethics
The refrain that corporate leaders need to focus on leadership and culture may sound like old hat, but it bears repeating—especially since, Compliance Week columnist Rick Steinberg notes, even large businesses with ostensibly mature compliance programs keep making the same mistakes. Inside, he examines one particularly bad day for several titans of Corporate America and why they came up short.
Posted inInternal Controls
Some Predictions for the Coming Year in Corporate Governance
As 2014 enters its final month and the coming year looms just around the corner, it’s time for those lists of predictions of what 2015 will bring. Inside, columnist Richard Steinberg takes a look into his crystal ball for what developments will be shaping corporate governance in the coming year. He expects more clashes between investors and boards, even as communication between the two increases, and more proxy access campaigns. More predictions inside.
Posted inFrom the Archive
Why We Should Be Asking, ‘Can We Talk?’
Title: Why We Should Be Asking, ‘Can Whether or not you liked her humor, Joan Rivers was a force of nature, perhaps best known for her catchphrase, “Can we talk?” The line captures an idea that fits very nicely into a business setting. It means there’s something important we need to discuss, whether you like it or not. Inside, columnist Richard Steinberg examines the role of communication in risk management and how some disasters could have been avoided if only more executives just asked, “Can we talk?”
Posted inBoards & Shareholders
‘Must Have’ Information for Boards of Directors
While in golf it’s nice to take a “Mulligan” or “breakfast ball” after you put your first tee shot into the parking lot, it’s a little harder to take back a bad business decision. Sure, we’ve all made them, but rarely are there “do-overs” in the boardroom. Worse still, some poor business decisions come because […]
Posted inBoards & Shareholders
Lessons in Reconstructing Risk Management
Are you comfortable with how your company is dealing with cyber-security risk? What about strategic risks? And how about risks related to legal and regulatory compliance? The more I deal with boards and senior managements, the more I hear that despite their increasing concern and focus on existing and emerging risks, there’s a consensus that […]
Posted inInternal Controls
More ‘C’mon Man’ Moments in Recent Risk-Management History
With the kickoff of the pro football regular season approaching, fans will soon be watching low-lights of players and coaches fumbling and bumbling their way to football notoriety. Surely commentators Mike Ditka, Chris Carter, and others will be watching too and shouting “C’mon, man!” when the players mess up. I’m referring to the ESPN […]
Posted inInternal Controls
An Open Letter to GM CEO Mary Barra
Dear Ms. Barra, Over the last several weeks and months, you’ve been immersed in the ignition-switch fiasco. You’ve had to deal with Congressional and internal investigations, lawsuits, vehicle recall fixes, and associated reputational damage. As you work through these problems, you’ve said you’re working to change the culture at GM, and undoubtedly have your top […]
Posted inBoards & Shareholders
Navigating the Treacherous Waters of a Board Refresh
We see it too often—corporate boards with members who simply don’t carry their weight in the boardroom, leaving boards and their committees hamstrung. Some of these directors have been serving on a board for many years, and they’ve become complacent or failed to keep up with the evolving world around them. On other boards, the […]