an ideal world team players
would achieve desired results in the best interests of the customer,
and corporate objectives would be at the core of planning and performance
Integrated risk management is about aligning an organization's management
processes to achieve this vision. The identification, assessment and management
of risk across an organization helps reveal the impact of risk on the
whole organization and the interdependence of risk management strategies
across it. Integrating this information at a corporate level helps optimize
resources (e.g. by preventing the over-hedging of risk through the identification
of inherent or natural hedges). Integrated risk management can be implemented
once systematic risk management becomes embedded in the organization's
corporate strategy and performance measurements. It will shape the organization's
risk management culture
creating a risk-smart organization.
The need to integrate risk management across organizations stems from
the realization that:
- Some risks are complex: mitigating a risk in one department
may create a more significant risk in another department;
- Hedging all risks is expensive in both economic and policy
terms. If the same risk is hedged across several departments
we may be unnecessarily compounding the expense;
- Many risks are linked by the same source of risk;
- Integrated risk management can support activities that foster
innovation and strategic flexibility; and
- Integrated risk management strives for the optimal balance
of risk at the corporate level.
Integrated Risk Management Mandates
For a provincial government in Canada,
LESRISK provided the technical and change management expertise
for the implementation of integrated risk management, organization-wide.
We developed the risk management policies, process, framework and training
programs. The success of the initiative, as measured by the controller's
capacity checklist and strategic planning improvements was significant.
Coached the CFO a multi-branch financial institution to actively
manage assets and liabilities and restructure the financial and new
product development functions, resulting in 200%+ income growth within
a year. Linking treasury, marketing and retail functions was key to
the success of the project.
emphasis on credit risk management, LESRISK
planned and conducted the viability study for a virtual financial
institution as an alternative method of service delivery. This contingency
plan is now in implementation on a national scale.
LESRISK has acted as an Advisor to
central banks and sovereign finance ministries on reform of treasury
practices consistent with the principles of transparency and taxpayer
Consultant, Leslie Thompson led the
start-up of an international-scale treasury operation responsible
for managing a C$65 billion debt portfolio, C$9 billion investment portfolio,
and a C$25 billion derivatives portfolio. The team was elected Sovereign
Borrower-of-the-Year just 9-months after its inception.
For a federal government agency, LESRISK
performed value-for money audits of treasury operations and the integrated
risk management initiative.
For an internet technology firm, LESRISK
facilitated the risk analysis that key to development of their business