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 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 company 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 reputational risk management
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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Build risk awareness and 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 awareness 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 company 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 ERM and why is it important?
Enterprise risk management, or ERM, can help businesses plan for a range of future events. ERM takes a holistic look at risks and allows organisations to identify, assess and prepare for events that can impact a range of business operations and strategies.
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 organisations themselves.
Highly regulated businesses include those in:
- Finance and banking
- Aged care
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 around risk management are also helpful, such as the ISO 31000 Risk Management standard and recommendations for safeguarding against financial risk such as Basel III.
What are the eight components of ERM?
ERM looks at all kinds of risk events, and develops frameworks for them across these 8 areas:
- Human resources / conduct and compliance
Why is reputational damage such an ever-present risk?
Given the value assigned to brands, it can be argued that 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.
But in today’s complex enterprises, where marketing, sales, customer service, communications, customer experience and frontline sales and service functions can all sit in different management teams, it can be easy for reputational issues to fall through the cracks.
While People Development teams can work hard to ensure employees have the skills to do their jobs properly, even these teams can be siloed, with Learning and Development sitting in one team, while Human Resources, Internal Communications and Employee Engagement sit in different management teams. This makes risk management across the organisation a challenge.
YakTrak can address these risks using its unique software platform that can not only track conversations that your staff are having with customers, but also the conversations your leaders are having with their people.
Yaktrak also tracks the remediation that takes place after a conduct risk or compliance event has been identified and makes reporting to management about remediation easier.
What are the different ways to respond to risks?
In general terms, some of the types of possible responses to risk include:
- Acceptance or tolerance
- Avoidance or elimination
- Risk transfer
- Mitigationof risk using internal control procedures
- Other prevention activities
How an organisation responds is somewhat dependent on its risk appetite (aka tolerance). Some are more risk averse than others, and some businesses naturally lend themselves to being more risk averse. Regardless of the tolerance for risk, management of it is imperative.
Is it ever OK to take a risk?
Calculated risks should be part of a business and there are good corporate risks. Acceptance, tolerance and transference are all possible ways of responding to risk events that may be tolerated or that are identified as “good risks.”
How do you know if an organisation is managing its enterprise risk?
Traditionally managing corporate risks was more about avoiding risk in general. But enterprise risk management looks at the environment with an enterprise-wide lens and can also consider “good risk.” 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.
A good way to tell if an organisation is on top of ERM is whether they have a Chief Risk Officer in their company. These organisations recognise that ERM can become a competitive advantage as well as a sensible risk approach. And by placing enterprise risk as a key part of corporate policy, these bodies are able to use the information and insights from ERM assessments to inform their strategic plans.
How tied is enterprise risk to company strategy?
The key to ERM success is that it is tied to business goals – what are the risks that may impede or provide opportunities for achieving a particular strategic business aim?
One outcome of ERM is that your organisation 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.
Some of the questions you should consider when undertaking ERM is:
- 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?
Does your business need a risk management framework and risk management solution to help your ERM?
How can we implement enterprise risk management (ERM)?
While the best enterprise risk management (ERM) draws upon complicated mathematical models and actuarial analysis to understand the cumulative effects of risks, these skills are less prevalent outside of the insurance industry and aren’t necessary when you are first setting up an ERM function. Even a small entity can use an ERM-style of analysis to understand their risk profile and management of it.
It’s important to recognise that ERM is an ongoing process.
The first step of implementing ERM is to consider that it is not a discrete analysis. ERM done well is a continuous loop that begins with consideration of the strategic goals of the organisation. In other words, consulting and considering what’s important to the company and warrants attention is the first step. The next step identifies risks related to those corporate priorities, does an assessment, develops an action plan to respond, then puts processes in place to monitor and measures the control of those risks.
While these skills may not be required for all entities you should ensure appropriate resources are allocated. 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
What is the right strategic ERM course for you?
Consider your business’s online and customer processes, plans, audit trail needs and risk assessment requirements. Think about your current risk management processes. Make sure you support your teams and leaders with the right resources – including tools like YakTrak. Developing an ongoing enterprise risk management (ERM) system, with help from YakTrak can provide robust insurance against the unexpected.
YakTrak is a software-as-a-service (SaaS) people development system that includes a conduct risk and compliance module. YakTrak lifts capability, maximises performance and minimises the danger of conduct breaches by supporting continual learning and training.
Medium-to-large businesses in Australia are already using YakTrak’s risk management software to assist their management of conduct risk of their customer-facing employees and leadership teams.
Who is responsible for compliance and protection?
Depending on the risk profile of your workplace this will differ. If you have a compliance team, it will be responsible for evaluation, planning and implementation. But getting the culture right is key. This is driven from the top down and education needs to be a major facet.