Enterprise risk management: avoid reputational risks and boost performance
Gain superior visibility over the daily conduct of your people: improving performance, supporting enterprise risk management and reducing enterprise risk. Minimise the danger of compliance breaches by creating a culture of continual learning and training with YakTrak.
YakTrak wrangles all the information you need to build capability – helping you to have an enterprise-wide view so problems don’t fall through the cracks.
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Help enterprise risk management (ERM) while boosting performance
Support people to deliver their best – safely
- Track, measure and coach for specific behaviours
- Keep the focus on targeted outcomes
- Set out the behaviours you want to see in relation to identified risks and build capability to minimise them
- Support remediation training and tracking of conduct risk and compliance breaches
- Give your teams and leaders the resources and visibility they need over coaching conversations
Support your enterprise risk management framework
Provide compliance and ERM teams with the audit trails they need
- Build a customised workflow or sequence of actions to respond to issues if they occur
- Pull data logs easily to provide evidence of remediation to regulators and ERM teams
- Customised dashboards and reporting provide executive line of sight across individual, team and organisation performance
Assist leaders and management to reduce risk
Powerful visibility with unique real-time reporting
- Incorporate inputs from compliance, customer remediation and governance teams to customise a workflow that gives your executive team the knowledge and tools to improve outcomes
- Easily access audit trails that are important to your business
- Bring all development activity, forms and documentation into the one place for oversight over performance
Improve standards and decrease reputational risk
Drive better customer interactions
- Deliver improved customer service by focusing on the outcomes you want to see
- Build the capability that drives safe performance in your frontline teams
- Implement a program that will transform customer conversations with on-the-job coaching for specific behaviours
An ERM early warning system
Use YakTrak to intervene before small problems become big risks
- Improve quality assurance and reduce workarounds
- See when coaching between a leader and team member stops
- Track when goals aren’t being achieved – or set
- Observe when quality starts to decrease
YakTrak's risk management solution – helping you stay on course
Risk management can be a challenge, use a solution that supports improvement
- Support a cycle of identification, assessment, response and monitoring of risks with customisable workflows that suits your business structure and processes
- Ensure each department that needs to know about breaches does with powerful reporting and dashboards
- Track each remediation step
To understand how YakTrak can help manage a conduct risk breach between a contact centre team member and customer, watch this 90-second video.
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Manage risks with YakTrak
“We needed to make a cultural shift to move away from measuring output to a behavioural approach. If the regulators came to us and said ‘show us your coaching evidence’ we would be able to pull it out of YakTrak. YakTrak helped us build risk awareness.”
– Leisl Banfield, Change Manager, Bankwest
Read more about how Bankwest uses YakTrak.
One of the consequences of increased regulation and governance in Australia is the need to be able to provide evidence to the regulator of remediation of breaches. YakTrak can pull data logs out of the system easily to provide to regulators as required – improving risk reduction across your frontline.
Avoid risk with enterprise management software that evolves as you do
Legal and regulatory requirements are changing constantly. Software that evolves and changes as quickly as you do is imperative for risk management.
YakTrak is proud to say it’s not like other enterprise software systems. It’s:
- easy to implement, simple to use and maintain
- cost-effective to customise
- safe and secure – with all data kept in Australian-based data centres (or any global location as required).
YakTrak’s software system provides modules for people development (the base module), quality assurance, and conduct risk, as well as provision for data leakage protection.
Customised dashboards and reporting can provide executive line of sight across individual, team and organisation performance.
Customers say YakTrak is easy to use
In a survey of YakTrak’s customers, users were overwhelmingly positive about their experience using YakTrak’s people development software. Of the users surveyed, 79.4% found YakTrak easy to use, and 63.2% said YakTrak had made their role easier.
Read case studies highlighting the successes we have had with some of Australia’s most well-known brands.
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What is enterprise risk?
Enterprise risk encompasses the various risks facing an organisation. These risks can be a threat, with the potential to causes losses or even business survival. But risks can also present opportunities, and an organisation’s risk appetite will determine how willing it is to follow these opportunities.
What is enterprise risk management?
Enterprise risk management, or ERM, is the strategic, deliberate and planned approach to managing risk within an organisation. ERM takes a holistic approach to identifying risks and allows organisations to assess and prepare for events that can impact a range of business operations and strategies. ERM also considers the organisation’s risk culture and takes into account good risks that provide opportunities for the business aligned to strategic objectives.
ERM implementation across the organisation from senior management through to employees and other stakeholders are also important considerations. Even a small entity can use an ERM-style of analysis to understand their risk profile and management of it.
Why is enterprise risk management important?
Enterprise risk management (ERM) can help businesses plan for a range of potential events. Governance and conduct risk has become a regular topic for highly regulated industries. Following the Hayne Royal Commission into Financial Services Industry in Australia, there has been an increased need for transparent governance and appropriate responses and monitoring systems around risk management. While these changes place a governance burden on corporations and their management, they are generally considered by society to be in the interests of customers, employees and organizations themselves.
Other countries have similar requirements and resources for governance and regulation to minimise risk, including the Sarbanes-Oxley Act (SOX) of 2002 and the Committee of Sponsoring Organizations (‘COSO’) that developed from the National Fraudulent Financial Information Commission (the Treadway Commission) in the United States. International advisory guidelines and standards are also helpful, such as the ISO 31000 Risk Management standard and recommendations for safeguarding against financial risk such as Basel III.
ERM can also contribute to an organization’s ability to manage a business process such as business continuity.
What industries require enterprise risk management?
Highly regulated industries often have compliance obligations that need to be appropriately managed. Highly regulated businesses include those in:
- Finance and banking
- Aged care
What are the eight components of ERM?
ERM looks at the risk environment, and develops frameworks for various risks across these 8 areas:
- Human resources / conduct and compliance
Why is reputational damage such an ever-present risk?
In today’s complex enterprises, where different business units like marketing, sales, customer service, communications, customer experience and frontline sales and service functions can all sit in different management teams, it’s easy for reputational issues to fall through the cracks. This makes risk management across the organisation a challenge.
Brand and reputation are some of the most valuable intangible assets that corporations can have but until recently, it wasn’t possible to get insurance that services brand damage. This makes management of the reputational risks arising from customer interactions or employee conduct a serious concern for brands.
What are the different ways to respond to risks?
Some of the types of responses to risk include:
- Acceptance or tolerance
- Avoidance or elimination
- Risk transfer
- Mitigation of risk using internal control procedures
- Other prevention activities
How an organisation responds is somewhat dependent on its risk appetite (aka tolerance). Some have more of a risk culture than others, and some businesses naturally lend themselves to being more risk averse. Regardless of the tolerance for risk, management of key risks is imperative.
Is it ever OK to take a risk?
Yes. Calculated risks should be part of a business and there are good corporate risks. Good risk is the kind that can help grow companies and is a cornerstone of the twenty-first century entrepreneurial world of business and innovation. Acceptance, tolerance and transference are all possible ways of responding to key business risks that may be tolerated or that are identified as good risks.
How do you know if an organisation is managing its risk?
A good way to tell if an business is on top of ERM is whether they have a Chief Risk Officer. These companies recognise that ERM can be a competitive advantage as well as a sensible risk management process. Enterprise risk management looks at the environment with an enterprise-wide lens and can also consider good risk.
By placing enterprise risk as a key part of corporate policy, these companies are able to use the information and insights from ERM assessments to inform their strategic plans.
How connected is enterprise risk to business strategy?
The key to ERM success is tied to business goals:
- What are the risks that may impede or provide opportunities for achieving your strategic business aims?
- What internally could affect each element of our business plans?
- What externally could affect each element of our business plans?
- What systems and ERM processes do we have in place to respond to these internal and external risks?
One outcome of ERM is that your organization isn’t just trying to manage risk, it is trying to develop policies to achieve strategic goals. In this way, ERM can also become a tool for strategic decision-making.
How do I implement enterprise risk management (ERM)?
Consider what’s important to the business and warrants attention. Then identify risks related to those corporate priorities, do an assessment, develop an action plan to respond, and put processes in place to monitor and measure the control of those risks.
Ensure appropriate resources are allocated. ERM is an ongoing process, not a discrete analysis. It is a continuous loop that begins with consideration of the strategic goals of the organisation.
The functional and tactical actions that need to be undertaken to support the ERM process include:
- Risk management procedures, processes and protocols
- Training and education
How do I choose the right strategic ERM software?
First you need an effective enterprise risk management strategy. Review your current risk management activities and processes, then consider your business’s online and customer processes, plans, audit trail needs and risk assessment requirements. What does your entire organization need from a enterprise risk management (ERM) system?
YakTrak is a software-as-a-service (SaaS) people development system that includes a conduct risk and compliance module. Medium-to-large companies in Australia are already using YakTrak’s risk management software to help manage conduct risk of their customer-facing employees and leadership teams.
Who is responsible for compliance and protection?
A compliance team will usually be responsible for evaluation, planning and implementation. Some organisations will also have a Chief Risk Officer. But getting the culture right is key so everyone shares the responsibility for managing risk. This should be driven from senior management down and education needs to be a major facet.