Executive Decision - March/April 2008 - (Page 46)

Technology as technology integration and system consolidation requirements. These risk areas, if left unaddressed, can adversely affect the overall M&A strategy and desired value creation. By developing well-designed IT strategies and strong technical capabilities, the risk intelligent CIO can help the organization create strategic flexibility—so organizations can withstand disaster and capitalize on new market opportunities. Connect Programs Risk intelligent enterprises not only nurture risk expertise within their programs, but also carefully build bridges between risk “silos” or departments to open lines of communication, share information, consider risk scenarios and the interaction of multiple risks and gain a broader perspective on the totality of risk. Part of the bridging process includes viewing governance, risk and compliance as comprehensively and tightly connected to performance management. CIOs manage an environment that is touched by Bill Kobel Principal Think Expansivel y Some threats may impact a geographic area that is significantly wider than a single plant or facility. In such cases, a commonly employed strategy—“If this co-location or plant has a disruption, we’ll move operations to another site”—may not be viable. Preparedness for certain categories of severe business disruption should not be limited to single location, but should include all mission-critical sites, irrespective of geography. Look Outside Company Boundaries For many companies, an even wider net should be cast, one that captures both upstream and downstream entities (i.e., supply chain partners, distributors, customers and other parties). The interdependencies of today’s business world mean nearly every corporate risk and compliance program. T maintain appropriate controls as well as streamline o cost and complexity in such an environment, CIOs need to leverage common information, processes and systems to help overcome organizational challenges, such as disparate data, poor information and institutional inertia. Underst and Impact With today’s organizations facing a seemingly endless number of risks, it’s impractical—and inefficient—to try to plan for every single one. Thus, CIOs should focus on the finite impacts that could result from myriad threats. A business impact analysis can help illuminate the ways that an organization can be affected, regardless of the cause. Such an analysis is built on quantifiable impact that is consistently understood and applied across the organization. Deloitte & Touche, LLP that due diligence around risk management—and IT risk—must extend beyond company boundaries. Any vulnerability in the supply chain or distribution channels could lead to a “weak link” scenario that could abruptly stop business. As such, it is important to hold suppliers and distributors to the same standards as you hold yourself. 46 EXECUTIVE DECISION I execdecision.com http://execdecision.com

Table of Contents Feed for the Digital Edition of Executive Decision - March/April 2008

Executive Decision - March/April 2008 Contents Index of Advertisers Contributing Editors From the Editor's Desk Publisher's Note You Be the Judge - Unionization Thought Leader - Pitney Bowes Management - Flying High for Long-Term Results Strategies - Sovereign Wealth Funds Cover Story - In Whom Do We Trust? The Movement for Greater Accountability & Disclosure Finance/Legal - The New Boycott Model Green At Work - Transforming for Sustainability Technology - Embracing Risk Leadership - Executive Reputation Management The Global Village - China Moves to Curb Prices Economic Profile - California Gold Rush Transformations - I Can See Clearly Now, The Brain Is Gone Marketing - Effectively Using Market Research The Bottom Line - Brands: A Shrinking Advantage or Shifting Advantage? Pulse - Pandemic: Not If But When SPECIAL SECTION - Living On the Green: Luxury Golf Destinations

Executive Decision - March/April 2008

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