Today I want to share some tips about how enhancing your reputation will ultimately result in improving your profitability.
Over the years, many of us have likely been gaining a strong awareness that most of the Internal Control Systems or Models often originate from the incidental and temporary needs of abiding by a rule and avoiding the related sanctions, rather than from a conscious enduring strategic choice and a resolute reputation building effort by the corporate management.
It is still rare to find a company committed to designing and putting into action real auditing and risk monitoring models effectively linked with the strategy and aimed at enhancing the company’s reputation.
The approach of a sound GRC consulting approach should therefore be oriented not just to the implementation and simulation of an Enterprise Risk Management Model, but mainly to making companies’ managers aware of a strategic, reputation-focussed vision as the most appropriate framework of a Risk Management and Compliance modelling effort returning its benefits over the entire governance of the enterprise.
In our opinion, the objectives that appear to be the right ones when undertaking a risk management endeavour are:
understanding the strategic vision of Risk Management so that it be considered an essential tool in managing the enterprise’s image, not just a tool to comply with a rule.
defining modalities and criteria to integrate Management Systems and ethical oversight in a Management and Control Model aiming at a full Corporate Social Responsibility Model.
providing knowledge to consciously guide compliance officers and risk managers while realising a Model.
defining criteria and modalities to maintain a Model over time, so that its adherence to the real organisation and its effectiveness are guaranteed.