Preparation of corporate functional models that provide a foundation for stimulating and assuring all-encompassing , global identification of risk with their associated loss potential as a means of balancing risk financing and risk control.
Client Management Concerns and Needs
Modern corporations are far more complex than they appear to be at first glance. The interaction of many forces – social, cultural, political, financial, environmental, and legal – form a landscape or topography of the organization which defies easy definition. Executives are constantly challenged to balance between leading and directing – between empowering others and taking charge themselves. The distinction between stakeholders and shareholders easily becomes blurred. And of course there are risks regardless of whatever management path is pursued. But the key question is: "How can I gain that perspective that allows me to confidently make major decisions while maintaining proper balance between opportunity and risk?" One technique that has proven most effective in providing this desired perspective is the creation and utilization of functional modeling.
Such modeling involves functions – activities, tasks, things done, or work performed – that occur within the corporation being described in a "map" or sequential format which provides directional flow. Its corporate interconnectedness – from "womb to tomb" -- enables top management to view the corporation holistically and systematically in much the same manner as that employed in a wartime "Situation Room."
Work Required to Satisfy Concerns
Two fundamentally different types of intelligence are needed for risk mapping. First, a rational infrastructure must be constructed, using a proven systematic methodology. Then -- into that framework -- the knowledge, history, expertise, and corporate consciousness that is unique to the particular corporation must be integrated. Thus both a skeleton and its associated flesh come together to form the risk map. Initially, these two very different types of thought may not even appear to be compatible. The skeleton connotes organization and order while the collective ongoing, dynamic corporate life is anything but orderly. This demands a skillful merging, an open accommodation, a smooth blending of two contrasting ways of viewing the corporation. Both parties must become educated in the other's world – their language, values, and perspective. The resultant model will always remain dynamic and responsive to the inevitable milieu of change within which every corporation exists.
Preparation of corporate functional models that provide a foundation for stimulating and assuring all-encompassing, global identification of risks with their associated loss potential as a means of balancing risk financing and risk control.