未來企業(yè)風險績效管理外文翻譯

1、未來企業(yè)風險績效管理【外文翻譯】本科畢業(yè)論文 （ 設(shè)計）文翻譯外原文:The Future: Enterprise risk-based performance managementOnce an organization becomes quite successful it becomes adverse to risk taking. Taking risks, albeit calculated risks, is essential for organizations to change and be innovative.Enterprise performance managem

2、ent is defined as a broader umbrella concept of integrated methodologies much broader than its previous definition as dashboardsand better financial reporting. What could possibly be an even broader definition? Enterprise performance management is a crucial, integral part of how an organization real

3、izes its strategy to maximize its value to stakeholders, both in commercial and public sector organizations. This means that enterprise performance management must beencompassed by a broader overarching concept enterprise riskmanagement (ERM).A popular acronym is GRC (governance, risk, and complianc

4、e). One may consider governance (G) as the stewardship of executives to behave in a responsible way, such as providing a safe work environment or formulating an effective strategy; and consider compliance (C) as operating under laws and regulations. Risk management (R), the thirdelement of GRC, is t

5、he element more associated with performancemanagement.Governance and compliance awareness from government legislation suchas Sarbanes-Oxley and Basel II is clearly on the minds of all executives.Accountability and responsibility can no longer be evaded. If executiveserr on compliance, they can go to

6、 jail. As a result, internal auditcontrols have been beefed up. Today, there is too muchcll in GRC. Itssubstantial administrative effort has become a distraction fororganizations to focus on organizational improvement.The R| in GRC has similar characteristics of performancemanagement. Thefoundation

7、for both ERM and performance management share two beliefs:1. The less uncertainty there is about the future, the better.2. If you can not measure it, you can not manage it.Risk as opportunity or hazard?ERM is not about minimizing an organizations risk exposure; Itall aboutexploiting risk for maximum

8、 competitive advantage. A risky businessstrategy and plan always carries high prices. For example, whatinvestment analysts do not know about a company or if they haveuncertainty or concerns will result in adding a premium to capital costsand discounting of a companys stock value. Uncertainty can inc

9、ludeaccuracy, completeness, compliance, and timeliness in addition to justbeing a prediction or estimate that can be applied to a target, baseline, historical actual (or average), or benchmark.Effective risk management practices counter these examples by being comprehensive in recognizing and evalua

10、ting all potential risks. Its goal is less volatility, greater predictability, fewer surprises, and the ability to bounce back quickly after a risk event occurs. A simple view of risk is that more things can happen than will happen. If we can devise probabilities of possible outcomes, then we can co

11、nsider how wewill deal with surprises outcomes that are different from what weexpect. We can evaluate the consequences of being wrong in our expectations. In short, risk management is about dealing in advance with the consequences of being wrong.Risk can be viewed as having an opportunity that can b

12、e beneficial in the future in addition to risk viewed as a hazard. For example, a rain shower may be a disaster for artists at an outdoor art fair while being a huge break for an umbrella salesperson. What risk and opportunity both have in common is they are concerned with future events that may or

13、may not happen. Their events can be identified, but the magnitude of their effect uncertain, and the outcome of the event can be influenced with actions.Risk is usually associated with new costs because they may turn into problems. In contrast, opportunity can be associated with new economic value c

14、reation such asincreased revenues because they may turn into benefits. Most organizations can not quantify their risk exposure and have no common basis to evaluate their risk appetite relative to their risk exposure.Risk appetite is the amount of risk an organization is willing to absorb to generate

15、 the returns it expects to gain. The objective is not to eliminate all risk, but rather to match risk exposure to risk appetite.ERM is not simply contingency planning. That is too vague. It begins with a systematic way of recognizing sources of uncertainty and then applies quantitative methods to me

16、asure and assess three factors:1. The probability of an event occurring.2. The severity impact of the event.3. Managements capability and effectiveness to respond to the event.Based on these factors for various risks, ERM then evaluates alternative actions and associated costs to potentially mitigat

17、e or take advantage of each identified risk.Types of risk categoriesWith potentially hundreds of risks that may be identified, dealing with them may seem daunting. Consequently, ERM can be better understood by categorizing various risks. For example, identified risks could be grouped as being strate

18、gic, financial, operational, or hazard. Or they could be grouped as external or internal and controllable or uncontrollable. An alternative risk categorization is these four types:1. Market and price risk. The risk that an increasing product or serviceoffering supply or an aggressive price reduction

19、 from competitors will force lower prices and consequently profits.2. Credit risk. The risk that customers will fail to pay for their purchases.3. Operational risk. The risk of loss resulting from inadequate or failed internal strategy, processes, people and technology, or from external events.4. Le

20、gal risk. The financial risk from insufficient net positive cash flow or from exhausted capital equity-raising or cash-borrowing capability. The risk from litigation or regulatory authority penalties.Operational risk is the key lever of the four risk types where organizations canmatch their risk exp

21、osure to their risk appetite. This is where they can wager the big bets both on formulating the strategy and subsequently on executing the strategic objectives that comprise that strategy.Operational risk as defined above includes many possibilities including quality, workforce hiring and retention,

22、 supply chain, fraud, manager succession planning, catastrophic interruptions, technological innovations, and competitor actions.As earlier mentioned, operational risk management includes potential benefits from risks taken and from missed opportunities of risks not taken. Should we enter a market w

23、e are not now participating in? Should we offer an innovative product or service line offering while unsure of the size of the market or competitor reactions? How much should we rely on technology to automate a process? Will our suppliers dependably deliver materials or services at the right time or

24、 right quality? But organizations need to first measure their operational risk exposure and appetite in order to manage it.Risk-based performance management frameworkThe premise here is to link risk performance to business performance.As it is popularly described in the media, performance management

25、, whether defined narrowly or ideally more broadly, does not currently embrace risk governance. It should. Risk and uncertainty are too critical and influential to omit. For example, reputational risk caused by fraud (e.g., Tyco International), a terrifying product-related incident (e.g., Toyota), o

26、r some other news headline grabbing event cansubstantially damage acompanys market value.The four step sequence includes direction setting from the executiveleadershipWhere do we want to go? |- as well as the use of a compass and navigation toanswer the questions How will we get there? II and How we

27、ll are we doing tryingto get there? |Step 1. Risk management.This involves the strategy formulation aspect of risk management.Here the executives stand back and assess the key value drivers of theirmarket and environment, a process that includes the identification of their key risk indicators(KRIs).

28、 Formulating KRIs is essential to understand the root causes of risk. They include a predictive capability, so that by continuously monitoring variances between expected against re-forecasted Kris, the organization can react before rather than after a future event occurs.Step 2. Strategy and value m

29、anagement. s vision, mission,A key component of the portfolio of performance management methodologies is formulated here: the organization and strategy map. Here the executives determine markets, products, and customers to target. The vision, mission, and strategy map is how the executive team both

30、communicates to and also involves its managers and employee teams. Based on the strategy map, the organization collectively identifies the vital few and manageable projects and select core processes to excel at that will help it attain the multiple strategic objectives causally linked in the strateg

31、y map. This is also where research and development plus innovation projects are incubated.Step 3. Investment evaluation.A plan is one thing, but how much to spend accomplishing the plan is another. That amount is determined in this step. This involves the strategy execution aspect of risk management

32、. Resources, financial or physical, must always be considered as being scarce, so they must be wisely chosen. The capital markets now ultimately judge commercial companies on their future net positive free cash flow. This means thateverynext incremental expense or investment must be viewed ascontrib

33、uting to a project requiring an acceptable return on investment(ROI), including recovering the cost of capital. Spending constraintsexist everywhere. That is, customer value and shareholder value are notequivalent and positively correlated, but rather they have trade-offswith an optimum balance that

34、 companies strive to attain. This is why theannual budget and the inevitable rolling spending forecasts, typicallydisconnected from the executive teams strategy, must be linked to thestrategy.Management must decide on the cost versus benefits of the mitigationactions. Will the mitigation action, if

35、pursued, move a risk eventwithin the predefined risk appetite guidelines?Step 4. Performance management. In this last step, all of theexecutioncomponents of the performance management portfolio of methodologieskick into gear. These include, but are not limited to: customer-relationmanagement(CRM), e

36、nterprise-resource planning (ERP), supply-chainmanagement, activity-based costing, and Six Sigma/lean managementinitiatives. Since the mission-critical projects and select coreprocesses an enterprise must do well on will have already been selectedin Step 3, the balanced scorecard and dashboards, wit

37、h their predefinedkey performance indicators (KPIs) and performance indicators (PIs) atthis stage becomes the mechanism to steer the organization. The balancedscorecard includestarget-versus-actual KPI variance dashboard measures with drill-down analysis and color-coded alert signals. Scorecards and

38、 dashboards provide strategic and operational performance feedback so that everyemployee, who is now equipped with a line of sight to how he or shehelps to achieve the executives strategy, can daily answer theThefun dame ntal questio n, How am I doing on what is imp orta nt?clockwise internal stepsI

39、mprove, Adjust, Re -Monitor | are howemployees collaborate tocontinuously re-align their work efforts, priorities, and resources to attain the strategic objectives defined in step two. The four steps are a continuous cycle where risk is dynamically reassessed and strategy subsequently adjusted.Strat

40、egy execution risk management begins with strategic objectivesMeasuring and managing the operational risks identified is now transitioning from an intuitive art to more of a craft and science. To introduce quantification to this each identified risk requires some form of ranking, such as by level of

41、 importancehigh, medium, and low. Since the importance of a risk event includes not just its impact, but also its probability of occurrence, developing a risk map can be a superior method to quantify the risks and then collectively associate and rationalize all of them with helps an organization vis

42、ualize all risks on a single page. The risks in the risk map are evaluated for mitigation action. What this risk map reveals is that risks number two, three, and eight are in a critical zone.Management must decide if it can accept these three risks considering their potential impact and likelihood.

43、If not, management might choose to avoid whatever is creating the risk as for exampleentering a new market. Some mitigation action might be considered that would drive the risks to a more acceptable level in terms of impact and likelihood. As examples, an action might result in transferring some of

44、the risk through a joint venture; or it might involve incurring additional expense through hedging. Management must decide on the cost versus benefits of the mitigation actions. Will the mitigation action, if pursued, move a risk event within the predefined risk appetite guidelines? Is the residual

45、risk remaining after mitigation action acceptable? If not, what additional action can be taken? What is the cost and what are the potential benefits of reducing impact and likelihood? After these decisions are made, then similar to the projects and initiatives derived from the strategy map, risk mit

46、igation actions can be budgeted.Invulnerable today, but aimless tomorrowAlmost half of roughly 25 companies listed in the book In Search ofExcellenceby TomPeters and Robert Waterman either no longer exist have gone bankrupt or have performed poorly. What happened over the course 25 years since the b

47、ook was published? One theory is that once an organization becomes quite successful it risks, albeit calculated risks, is essential for organizations to change and be innovative. Classic managerial methods of past decades, such as total quality management, are now giving way to a trend of management

48、 by data. However, I would caution that extensively analyzing historical data is not sufficient without complementing descriptive data with predictive information. The absence of reliable foresight explains why companies seem invulnerable one minute and aimless the next. An important competence that

49、 will be key to an organization s performance: a combination of forecasting and risk management.Source: Cokins Gary,2010The Future: Enterprise risk -based performanceman ageme nt. CMA Ma nageme nt,vol.84,lssue 3,May. pp .24-29.譯文:未來企業(yè)風險績效管理一旦一個組織變得相當成功 ,就意味著它開始冒險。冒險 ,雖然合理風險 ,是十 分必要的組織能夠改變和創(chuàng)新。企業(yè)績效管理定

50、義為 : 更廣闊的傘的綜合概念方法比其先前更廣泛的定義 是儀表板和更好的財務(wù)報告。還有什么能成為一個更加廣闊的定義嗎 ? 企業(yè)績效管 理是一個整體非常重要的一部分 , 無論在商業(yè)和公共部門的組織，是一個組織實現(xiàn) 其戰(zhàn)略價值最大化利益相關(guān)者。這意味著企業(yè)績效管理必須聯(lián)系到的首要的理念 企業(yè)風險管理。一個流行的首字母縮寫詞是“ GRC (統(tǒng)治、風險和合規(guī)性)。你可以考慮治理 ( G )為管理的管理人員行為舉止要負責的方式 , 例如提供一個安全的工作環(huán)境或制定有效的策略。合規(guī)即在法律法規(guī)下進行操作。風險管理是“ GRC的第三個元素，它 與績效管理更為相關(guān)。義務(wù)和責任是不可避免的。如果主管在合規(guī)性上犯

51、了錯 , 他們就有可能進監(jiān) 獄。因此 , 內(nèi)部審計控制已經(jīng)被加強。GRC勺“ R也有類似的性能特點管理。對于風險的基礎(chǔ)和績效管理分享二種信 念:1 未來的不確定性越少越好。2如果你不能測量 , 你就不能做到。風險的機會或危險 ?企業(yè)風險管理不是曝光組織最小的風險，而是將風險開發(fā)使它的競爭力最大 化。一種有風險的業(yè)務(wù)策略和計劃總是帶著高價。舉例來說 , 投資分析師不知道的 一個公司或他們?nèi)艚Y(jié)果的問題將會和不確定性增加了額外的資本成本或貼現(xiàn)公司股 票的價值。不確定性會包括準確性、完整性、順應(yīng)性和及時性。有效的風險管理措施可以綜合識別和評估所有潛在的風險。其目標是減少波動 有更大的可預見性 ,更少的

52、突然襲擊 , 并且風險事件發(fā)生后能夠很快就恢復。一個簡單的觀點風險是更多的事情在預料之外發(fā)生了。如果我們可以設(shè)計可能 結(jié)果的概率,那么我們就能考慮我們將會處理的突然襲擊我們所期待的是不同 的結(jié)果。我們可以在預期內(nèi)較好地評估是錯誤的后果。簡而言之 , 風險管理是關(guān)于 提前處理錯誤的結(jié)果。當風險有利于未來就會被視為有一個機會 , 反之風險會看作是一種危險。例如, 一場陣雨對一個正在戶外舉辦藝術(shù)博覽會的藝術(shù)家是一個災難 , 但對雨傘的 銷售員卻又是一個巨大的機會。風險和機會同時存在有相同的 , 它是關(guān)于未來事件 , 它可能發(fā)生 , 也可能不會發(fā)生。他們的演化可以辨識 ,但其影響的大小是不確定的。風險

53、常常讓人聯(lián)想到新的花費 , 因為他們可能會變成問題。相比之下 , 機會可以 關(guān)聯(lián)到新的經(jīng)濟價值創(chuàng)造如增加了收入 , 因為他們可能會變成效益。大多數(shù)機構(gòu)不 能量化他們的風險 , 相對于他們的風險偏好的風險，沒有普遍的基礎(chǔ)。風險偏好是 指為了實現(xiàn)目標，企業(yè)或個體投資者在承擔風險的種類、大小等方面的基本態(tài)度。風險就是一種不確定性，投資實體面對這種不確定性所表現(xiàn)出的態(tài)度、傾向便是其 風險偏好的具體體現(xiàn)。企業(yè)風險管理不僅僅是應(yīng)急規(guī)劃。它首先認識到系統(tǒng)的測量不確定度的來源并 運用定量方法來衡量和評估的三個要素1 某一事件發(fā)生的可能性。2某一事件的嚴重影響。3 管理的能力和效力對事件的回應(yīng)?；谶@些因素 , 企業(yè)風險管理可以識別其各種各樣的風險 , 風險交替作用和相關(guān) 費用可能減輕。風險類型要認定的數(shù)以百計潛在的風險，是件令人氣餒的事。因此 , 企業(yè)風險管理可以 更好地理解分類各種各樣的風險。例如 , 確認的風險可能被分組作為戰(zhàn)略、財務(wù)、 操作或危險?；蛘咚麄兛赡鼙环纸M外在或內(nèi)部、可控性或無法控制。選擇是這四類 風險的歸類 :1市場和價格風險。越來越多的風險提供產(chǎn)品或服務(wù)供給或咄咄逼人的降價從 競爭者將迫使降低價格 , 并且因此利潤。2 信貸風險。有風險客戶就會不支付他們