Strategic Thought

RM in your Role >

 CFO

The modern CFO has more responsibility to stakeholders and regulators than ever before. “I want to be able to make decisions today that won’t cost me tomorrow”.

Active Risk Manager enables a CFO to view, monitor and report on the key risks of the enterprise and to ensure capital efficiency.

Here are some of the benefits that an Enterprise Risk Management system can deliver to you as the CFO:

• Lower the Total Cost of Risk to enable capital efficiency.
• I want to be able to reduce my insurance costs, which are rising each year.
• Have an aggregated view of risks, so that the board can make strategic and tactical decisions to enable capital efficiency.
• In particular, I want to know what our 5 year risk exposure is, how much we are planning on spending to reduce this exposure, and what the resultant 5 year risk exposure is going  to be. I need this information presented in a easy to understand graphical report.
• Link the risks of your business to the key performance indicators that drive your financial success and be able to monitor the real impact.
  
• You can ensure that company forecasts and cash flows are risk adjusted: this is essential to delivering accurate financial statements to stakeholders and in optimizing profit and loss and reducing margin erosion.
• Visibility and analysis of the risk exposure across key areas across the enterprise will enable decision making on the portfolio of initiatives to improve the allocation of resources and capital efficiency.
• Monitoring the evaluation process of risks and controls within ARM provides assurance of the effectiveness of internal controls, enabling action to be taken where deficiencies exist. This is fundamental to good corporate governance and is increasingly a regulatory or legal requirement (e.g. Turnbull and Sarbanes Oxley).
• Drilling down through ARM management dashboards to get to the source of risks enables informed decisions around the key risks affecting your enterprise and capital efficiency in avoiding these risks for today and for future.
• Pulling together corporate reporting through ARM Reporting Services across multiple business information systems to see performance and key risks side-by-side enables a true ‘one-business’ view.