Articles

Guest Post by James Kline (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

In February 2021, the Organization for Economic Cooperation and Development (OECD) published an Enterprise Risk Management Maturity Model. This model is designed for Tax Administration Agencies. It is the culmination of work that began in 2018. This work was designed to develop stand-alone maturity models for a broad range of organizational activities. One of which was Enterprise Risk Management. This piece examines this model and discusses how such models are being used by government elsewhere.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

The Pareto Principle, or more commonly the “80/20 rule”, is based upon the observation that 80% of the consequences of something are attributable to 20% of the causes.  The quality guru Joseph Moses Juran named the Principle in 1941 after the Italian economist who, in 1896, observed that 80% of the land in Italy was owned by 20% of the population.  The centenarian also similarly observed that 80% of quality problems result from 20% of the causes.  In the business world we also see that 80% of a company’s revenue is generated by only 20% of its customers.  As with life, things are not distributed either evenly or even fairly.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

“That’s a Red Flag!” goes the cry from some when something amiss is recognised.  However, many project participants don’t realise that their Project sails through a sea of flags and that, on some occasion, the flags can be read as red by somebody at some time.

In a similar nautical vein the Roman writer Ovid once poetized “The man who has experienced shipwreck shudders even at a calm sea“.  While written some 2,000 years ago it is as true today as it ever was and a reminder to us all that risks lurk everywhere.  Some risks may not be identified, let alone assessed and may go unnoticed until they strike.  We need to be aware and vigilant and avoid a complacent belief that a risk register is the be all and end all.