Why upgrade to enterprise risk management?

The Global Financial Crisis taught us the importance of robust risk management practices in identifying and addressing issues that have the potential to impact on overall business objectives. Many organisations have implemented risk management programs, however a significant proportion of these have yet to realise the benefits of upgrading their programs to best-practice Enterprise Risk Management.

What’s the problem with traditional risk management programs?

Historically, risk management has tended to focus only on the negative – how do we identify what might go wrong? How bad will things get if it does? How can we stop it?

Another feature of old-fashioned risk management has been the tendency for it to be “siloed”, with each section of an organisation having its own approach to managing risk.

Modern, best practice Enterprise Risk Management has moved contemporary risk management programs and thinking beyond these limitations.

Why is Enterprise Risk Management better?

Enterprise Risk Management (also known as ERM) has a range of benefits for contemporary businesses:

  • ERM achieves efficiencies across the whole of the organisation by integrating a common approach throughout all functional areas.
  • ERM avoids the pitfall of concentrating on minor risks (such as slip hazards) at the expense of big picture risks (such as failure of critical infrastructure).
  • ERM captures the positive side of risk management, by also considering opportunities for new services, process efficiencies, improved methods of service delivery etc.

What strategies assist adoption of Enterprise Risk Management?

 

QRMC frequently assists organisations to develop or expand their risk management programs to embrace Enterprise Risk Management. Our experience suggests that useful strategies to successfully move to Enterprise Risk Management include:

  • Strong committed, visible leadership.
  • Recognising that risk management is an ongoing (not once-off) process.
  • Treating risk management as a tool to achieve business objectives, not as a compliance exercise.
  • Extensive consultation with, and training of, personnel (at all levels).
  • Consistently integrating ERM across all systems and functional areas within the organisation.

Special considerations for business or department amalgamation

 

A regular feature of contemporary business is the process of amalgamation, either of existing segments of an organisation, or of one business with a completely independent second business (M&A).

Determining the business objectives of a new organisation formed in this way is not always a straightforward exercise. The clarity provided by the risk management process greatly assists this determination.

However, amalgamation poses particular difficulties when it comes to the risk management program:

  1. There are often difficulties involved in assimilating risk-related information from different sources, produced using different methods.
  2. Amalgamation poses the threat of extending the commonly experienced problem of risk management “silos” (as mentioned above) even further by creating silos based on the original business or department entities.

On the positive side, these difficulties present an opportunity to reach solutions by upgrading existing risk management systems to Enterprise Risk Management. Moving the new entity to Enterprise Risk Management provides opportunities to:

  1. Clearly identify the objectives of the new entity, and what risks and opportunities exist in achieving these objectives.
  2. Break down barriers and foster a new organisation-wide approach to risk management and the determination of uniform risk appetite.

Next steps

 

Risk management as a discipline has proven its value over time. Now businesses can extend this value even further by upgrading to Enterprise Risk Management.

For more information on Enterprise Risk Management, safety management, business continuity management and management systems, contact us. We are experts in providing independent and objective facilitation of the process of upgrading or developing new Enterprise Risk Management programs. You can also access other informative articles on our News page dealing with Enterprise Risk Management, as well as newsletters downloadable from our Publications page covering Enterprise Risk Management issues.

Energy Bill Busting Tips

Are you dreading your next power bill? Starting to worry about how the increases in electricity prices are going to drain your household budget. Well you’re not on your own, so here is what you can do to reduce your fiscal stress and your bills.

Most of the time simple and easy common sense measures can shave hundreds of dollars off your bills just by following these steps.

Top Ten Ways to Reduce Your Bills FOR FREE

1. Most people do not realise how much electricity a simple light bulb could be adding to the cost of their electricity bills. Turning off lights when you leave a room will make a big difference.

2. Try to avoid using the clothes dryer, if the weather is bad buy a clothes rank that you can use inside.

3. If going on holidays, turn off your electric hot water system at the meter board to avoid the system constantly heating up water when it’s not being used.

4. If you have a peak smart enabled air conditioner you can connect your air-conditioning unit to Tariff 33 – which provides a guaranteed 18 hours of electricity at tariff 33 rates. You may not be able to turn on the system on during peak times, but this could be a good compromise to still enjoy your heating/cooling system without costing the earth. Energex are currently offering $250 reward for split system (peak smart enabled) and $500 reward for ducted systems (peak smart enabled). To see whether your air conditioner is eligible go to the Energex website.

5. An old inefficient pool pump could be costing you up to $640 annually to run on tariff 11. By connect your pool pump to Tariff 33 (if possible) could save you hundreds off your bill. Energex are currently offering a $250 reward for connecting your pool pump to Tariff 33.

6. Turn off additional refrigerators. Have a good think about how much you really use the other fridge. If it’s only for the occasional party switch it off in-between time or if it is to store extra food think whether you really need to store this much as you could be paying a fortune for “just in case you need it”.

7. When running your air conditioner set the temperature to 23 degrees in Summer, as every degree below this will cost you 10% more in running costs (eg. Running at 20 degrees will cost you 30% more than running it at 23 degrees) Or to save more open windows for ventilation rather than turning on the air conditioner in summer time.

8. Use cold water to wash your clothes. With the many washing detergents available today that are made for cold water washing it makes sense to use these rather using your electricity to heat up the water.

9. Once the weather starts to cool down, remember to close any windows that have been left open, use a throw blanket to snuggle up and keep warm whilst watching TV and get out the ugg boots. . If you do turn on the heater, keep the heat in the room you’re in by closing the door.

10. Using low flow showerheads in your shower usually consume less energy and provide the same amount of comfort.

All these free suggestions will reduce your energy usage and your power bills but they do take self discipline and children are often the worst offenders in leaving everything turned on. So if you don’t want to comprise on life style you can still reduce your bills by purchasing energy saving products such as a solar hot water system, solar power system, led lighting, skylights and monitoring systems. If you’d like to find out more visit www.anyenergy.com.au

Can I really save fuel with a Truck Wheel Alignment?

Most heavy vehicle owners in the transport industry are asking themselves – How can I save money on my running costs? How can I save on fuel consumption? Will a truck wheel alignment help?

Research & studies conducted around the world show that around 80 percent of medium to heavy vehicles are incorrectly aligned, or have a mis-alignment. If your truck, trailer or bus has incorrectly aligned wheels & axles, you have what we call increased rolling resistance when travelling on the road. This means the engine is working harder than required to push the truck along the road, and the end result is an increase in fuel consumption. Given that fuel can account for up to 50% of the operating costs of a truck or fleet, smart operators must explore all avenues to reduce fuel consumption.
Generally speaking, correcting even slight alignment issues have been shown to result in a saving of 3 – 10 percent on fuel.

3% doesn’t sound too significant does it? Lets take a closer look – One truck runs Brisbane to Sydney (return) 3 times a week (6,000 kms). That’s 312,000 kms a year. Fuel consumption average is 1.85 litres/km. That’s 577,200 litres, current local prices are around $1.49 per litre. Fuel cost for the year – $860,028.00. If you reduced fuel consumption by 3%, you would save $25,800.84!!
Your scenario may be different, but you can see that small changes can make a big difference to the bottom line of your business. There are other areas where you can save on running costs, which will be covered in another article.

If you own one truck or one hundred, and you are not having a regular truck wheel alignment performed as part of your maintenance schedule, you really need to contact your local truck wheel alignment specialist for a chat.

Truckologist is a mobile truck wheel alignment business based in Brisbane, Australia.

What to Consider When Hiring the Finest Children’s Magician Brisbane Residents Trust

Whether you’re planning to host your child’s pajama party, birthday party, or any other kiddie event, hiring a magician who can provide entertainment for everyone is a brilliant choice. Kids love magic shows, and you can guarantee their excitement and participation by inviting a professional children’s magician Brisbane residents rely on. You may even find yourself laughing along as you watch amazing tricks that these talented entertainers perform on your party.

Important Things to Consider Before Hiring a Party Magician

Initially, you need to know your guests and their age group. It’s important that you inform the magician about the kind of audience and number of guests who are attending the event. This way, he can choose the right material to use that will suit the crowd’s interests. For instance, younger kids may find card tricks uninteresting while older kids are likely to be mesmerized with this kind of performance in a magic show.

You should discuss with the magician how you want him to interact with the audience. There are entertainers who prefer to sit at one corner of the room where kids can come and huddle around as they watch magic tricks up close. However, some magicians like to walk around from one section of the room to another and interact with everyone at the party. Depending on your preferences and requirements, you can count on the entertainer to do exactly what you want him to do. So, make everything clear during your meeting to ensure your guests’ satisfaction and delight while watching the magic show.

Specify particular tricks that you want the magician to do. Do you want him to use live animals or real people during the show, or would you prefer card tricks for a slightly older age group as your audience? Just make sure you ask the magician first about his expertise and decide if his tricks are something that your guests may want to see.

A Few Other Things to Think About

Even experienced magicians must be informed about important aspects of the event before they can quote you a fee for their service. A magic show for a bunch of 7-year olds in your yard is far from a 2-hour show presented in front of 200 or more guests. You need to provide sufficient information before requesting a quote from him.

Just keep an open mind and listen attentively to the magician’s recommendations and determine if these suggestions are suitable for your party theme. The idea is to have an open communication with the professional and settle everything before you start hiring him. By doing so, there are no unpleasant surprises that may come along on the day of the party.

Choosing the best party magician for a kids’ party may be tricky, but as long as you’re certain about the person you have in mind, you can’t possibly go wrong. For a fun-filled kiddie party in Brisbane, you may want to consider hiring Johnny the Jester, one of the city’s finest magicians and performers. His versatility and ingenuity will blow you away, and you can expect your guests to feel the same way about his spectacular performances.

How to stop the flood of election junk mail?

Anywhere on Earth, whether it is a Local Council, Federal, Presidential or State election, your mailbox will groan under the weight of materials aimed at winning your vote. It might be the digital age, but it seems that a letter in your letterbox is still considered the most effective way of getting a message across.

While an informed electorate is crucial to the democratic process, there appears to be huge over-sending of junk mail for political purposes – and no clear way on how to stop this. What’s worse, the content of most of the political flyers is simply mudslinging about their opponents with no substance. Is anyone else reminded of children in the playground?

How can you help stop this unnecessary waste of resources? Imagine the strain on our environment and the large volume of greenhouse gases generated from all the trees cut down, printing, electricity and transport of the materials. Grab a cup of tea or your water bottle and let’s get down to it.

We know in Australia that material deemed to be political, educational, religious and charitable is exempt from “No Junk Mail” signed letterboxes according to standards conducted by the Australian Catalogue Association. So there is no way to stop it being deposited in your postbox along with the other junk mail catalogues enticing you to buy all sorts of things you don’t really need. It is probably the same in other countries.

Step 1. Incorrectly addressed political mail
Much of your mail may be addressed to past occupants of the house. You need to “return this to sender” with the note “no longer at this address”.

Step 2. Contact each political party or politician that is mailing you
There is no central database so you will need to call the office of each individual sender and ask to be removed from their mailing list. Remember to be nice! You catch more bees with honey than vinegar.

Step 3. National Standard to stop political junk mail
Write a letter to the Electoral Commission asking them to implement a National Standard to limit the number of pieces each political party is allowed to put in each household’s letterbox.

Step 4. Polling day
Don’t forget to recycle any materials you are given on the day – often the Greens Party has a box at the booths for such materials on polling day!

Written by Tracey Bailey, Director of Biome Eco Stores in Brisbane, specialists in water bottles and eco friendly, reusable choices for your home, body and lifestyle.