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 The Bradferd Approach
The evolution of enterprise risk management |
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Risk management is not what it used to be
Technological innovation, consolidation, complex regulation and increased accountability at the senior management
and board levels have all combined to significantly change the landscape of risk management today. Managing risk
has become increasingly complex due to:
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Higher accountability standards for boards of directors and senior executives |
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Unprecedented complexity of the regulatory environment, pressing firms for
better risk reporting and more integrated and comprehensive risk management |
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Shortage of skilled personnel |
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The emerging risks of e-business from online security to customer privacy |
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The increasing need for knowledge of regulations |
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The consolidation of markets and providers |
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The extensive nature of information technologies |
To help the market cope, new positions, tools, rules, and even language have been created, including:
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Regulation mandating certain risk management practices related to security,
privacy, operations, compliance and economic exposures |
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The introduction of the term "enterprise risk management" (ERM)
into the general business vocabulary |
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New executive positions, such as chief risk officer, chief security officer
and chief privacy officer |
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A proliferation of risk management software and other technology solutions |
Bradferd Associates can help you evolve your enterprise
risk management
The changes in risk management along with increased competition and technology continues to add pressure to produce
more with less.
Our approach to ERM has been successful for large corporations with access to the top ten largest accounting firms.
Until now small to midsize companies have not had opportunities to implement these services due to limited resources
and / or no service providers. We offer our clients an opportunity to implement risk management solutions that
were previously unavailable due to geographic and fiscal limitations.
We differentiate from the competition by making enterprise risk management and internal audit services our primary
service line. We further differentiate by providing seasoned risk management personnel that can provide our clients
with solutions from our full range of enterprise risk management, consulting and assurance services. Our approach
centers on knowledge transfer, learning and client service delivery that creates services to improve risk management
effectiveness and efficiency while increasing stakeholder satisfaction and avoiding surprises.
Our approach
to ERM combines risk management methods established by The Committee of Sponsoring Organizations (COSO) with business
process cycle methodology to complete a comprehensive analysis of business operations and results. We accomplish
this by applying the six steps of our Business Process Model (BPM).
Step 1: How
does management develop strategies, communicate their mission, vision, expectations and objectives.
Step 2: Critical
Success Factors (CSFs) - Has management identified specific activities and actions that are critical to the success
of the organization or process.
Step 3: Key
Performance Indicators (KPIs) - Has management defined and established performance measurements related to the
CSFs.
Step 4: Has
management designed and documented policies and procedures to guide critical business processes that align with
management expectations and links results to employee rewards.
Step 5: Is a
control environment implemented that adequately controls operations and supports stakeholder expectations.
Step 6: Does
management continually monitor and report progress and results of operations. |
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Higher Accountability |
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Better Risk Reporting |
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Comprehensive Risk Management |
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E-business |
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Online Security |
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Customer Privacy |
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Knowledge of Regulations |
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Information Technology |
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Technology Solutions |
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Critical Success Factors |
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Key Performance Indicators |
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Manage Risk Exposures |
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Operational Efficiency |
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Objective Analysis |
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Regulatory Compliance |
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Competitive Advantage |
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Knowledge of Best Practices |
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Achieve Operational and Strategic Goals |
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Asset Liability Management |
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Credit Operation Reviews |
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Portfolio Management Reviews |
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Loan Reviews |
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Trust Operation Reviews |
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Directors / Supervisory Examinations |
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Accounting Services |
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Financial Statement Audits |
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Tax Form Preparation |
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Accounting Services |
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Enterprise Risk Management |
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Internal Audit Services |
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Internal Control / Operation Reviews |
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Attestation Services |
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Compliance Examinations |
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Business Continuity Assessments |
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Sarbanes-Oxley - 404 |
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