LAS VEGAS, March 21, 2011 /PRNewswire/ -- Usually known as a pretty tame group, delegates attending the Institute of Internal Auditors, General Audit Management (GAM) conference took on the subject of corporate risk - with a vengeance.
Apparently influenced by the "take it to the limit" atmosphere of Las Vegas, animated discussions were held regarding recent corporate risk failures in general, and current risk assessment methods, in particular.
"Risk assessment must be pulled out of the dark ages," Valencia stressed. "If company objectives are not used as the basis for risk identification the process is doomed to fail," she continued.
During the discussions, 3 themes emerged as the foundation of an effective corporate risk assessment.
- Source of data - The people within the organization that face risks daily are the best source for identifying the risks that threaten the company most.
- Objectives - Looking at risks in a vacuum is a leading cause of confusion. Risk identification must start with the company's objectives. As one delegate remarked, "If your objective is to stay at home, then having a flat tire is simply not a risk!"
- Technology - A manually performed, linear analysis of risk data is not only time-consuming but will lead you to the wrong conclusions! Current advances in risk assessment technology allow companies to analyze the risk data they gather from their people automatically and multi-dimensionally.
Michael Bechara brought the discussion to a close by cautioning, "Our technology is creating a renaissance in risk assessment. Companies that insist on clinging to manual and linear risk assessments will be simply left behind."
About vPRO and Enlighten
We created Enlighten Software to simplify and demystify risk assessments. Our roots at Granite Consulting Group taught us a lot about risk assessment - the do's and the don'ts.
We believe in risk assessment, not as a process for its own sake, but as a valuable business analysis that allows companies to be more profitable. Risk Assessment, my friends, is a means to an end - and not an end in itself.
Our software is currently used by leaders in several industries with great success. We are constantly looking to prove our value in new industries. If you don't see your industry listed, become an Enlighten Industry Pioneer and we'll prove ourselves - for free!
vPRO is Value Process to assessing risks. The value to vPRO is in focusing on the risk patterns that are most dangerous to threatening the achievement of your goals. The vPRO process is designed to have a seamless interface for feeding your risk data into a neural network-based model. The tool of choice for vPRO is Enlighten. Enlighten is the "engine" behind the value process and yields unprecedented risk pattern results.
For an irreverent look at economics, finance and accounting, please read the risk blog, The Weekly Recon http://www.weeklyrecon.com/.
SOURCE Enlighten Software