Risk Conscious Talks
Risk Conscious
Episode 1: Why
Financial Institutions Fail
We look at why financial institutions fail.
Episode 2: Operational Risk
Operational Risk is the type of risk that will disrupt normal everyday activities. Operational Risks are all risks associated with the implementation of processes and procedures or the operation of systems. Some examples of these risks include: Loss due to fraud committed by employees; Loss arising from injuries from unsafe work environment; loss due to disruption of an IT System; loss arising from missed deadline to some statutory requirement amongst others.
Episode 3: Risks that face Not for Profit Organizations
An NGO is any non-profit, voluntary citizen’s group which is organized on a local, national or international level. NGOs are driven by people with a common interest and provide a variety of services. NGO activities include, but are not limited to, health, education, environmental, social, advocacy and human rights work. They work to promote social or political change on a broad scale or locally. NGOs play a critical role in developing society, improving communities and promoting citizen participation.
Episode 4: Fraud Risk
Fraud risk is an ever-present concern in various sectors such as finance and commerce sector. It refers to the possibility of individuals or organizations engaging in deceptive or dishonest activities for personal gain, causing harm to others or institutions.
Fraud risk arises due to several factors such as the increasing complexity of business operations, advancements in technology, and the constant evolution of fraudulent techniques. Fraudsters continuously adapt their methods to exploit vulnerabilities in systems and processes, making it crucial for individuals and organizations to remain vigilant and proactive in identifying and mitigating fraud risks.
In conclusion, fraud risk poses a serious threat to individuals, organizations, and society as a whole. Recognizing the potential for fraud, staying informed about emerging risks, and implementing robust prevention and detection measures are crucial steps in mitigating fraud risk and maintaining trust in our financial systems and institutions
Episode 5: Cybersecurity Risks
Cybersecurity is the practice of protecting systems, networks, and programs from digital attacks. In today’s interconnected world, cyber threats have the potential to disrupt our lives on various fronts i.e. from individuals to large organizations. Malicious actors, motivated by financial gain, political motives, or personal vendettas, continuously seek to exploit vulnerabilities in our digital systems. These risks include the proliferation of malware and ransomware attacks, social engineering tactics, password attacks, vulnerabilities in Internet of Things (IoT) devices, and threats to critical infrastructure.
According to the Kenya National Bureau of Statistics Economic Survey 2022, it is reported that cyber threats more than doubled from 139.9 million in 2020 to 339.1 million in 2021. Out of the cyber threats reported, system vulnerabilities had the highest increment from 114,675 in 2020 to 58.0 million in 2021. This was attributed to the growing number of cyber threat actors such as hacktivists, state-sponsored groups, organized cybercriminals, and cyber terrorists who targeted mainly the healthcare systems, utility providers, public infrastructure, insurance firms, schools, government organizations and financial institutions.
It is imperative that these cybersecurity risks are addressed by Governments, organizations, and individuals in order to implement robust security measures, raise awareness about best practices, and foster a culture of cybersecurity.
Cybersecurity risks are a reality we must confront in this digital era as technology continues to evolve. By acknowledging these risks, staying informed, and taking proactive steps to protect ourselves and our systems, we can mitigate the potential consequences and foster a safer and more secure digital environment.
Episode 6: Health and Safety Risks
Health and safety risks refer to potential hazards or dangers that can pose harm or injury to individuals’ physical, mental, or emotional well-being in various settings, such as workplaces, public spaces, or private environments. Health and safety risk which relates to Occupational Health and Safety can also be defined as the likelihood that a person may suffer harm or an adverse health effect if/when exposed to a hazard.
To mitigate health and safety risks, organizations and individuals need to implement safety measures, protocols, and guidelines. In order to identify potential hazards and develop strategies to prevent or reduce the likelihood of accidents, injuries or illnesses, risk assessments need to be conducted.
Episode 7: ESG Risks
ESG risks, also known as Environmental, Social, and Governance risks, refer to the potential challenges and negative impacts that a company or organization may face in relation to its environmental, social, and governance practices and performance. These risks are associated with how a company manages its responsibilities and impacts in these three key areas:
- Environmental Risks: These risks are related to a company’s impact on the natural environment and its ability to manage and mitigate environmental challenges.
- Social Risks: Social risks pertain to a company’s interactions with people, communities, and broader society.
- Governance Risks: Governance risks involve the internal management and decision-making processes of a company.
Addressing and managing ESG risks has become increasingly important for companies as stakeholders, including investors, customers, employees, and regulators, place greater emphasis on sustainability and responsible business practices. Failing to manage ESG risks effectively can lead to reputational damage, legal and financial consequences, and hinder long-term business success. Therefore, many organizations now incorporate ESG considerations into their strategic planning, reporting, and risk management processes.
Episode 8: People Risks
Employees are very important for the success of any organization, in fact in several spaces employees are considered as the silent assets for any organization. Employees have a high impact on business productivity. The effectiveness of human resources can be measured by absenteeism rates, staff attrition, accident rates, productivity (management), quality of finished products or services, as well as customer satisfaction. However, people’s risks are broader than efficient utilization of employees, some other risks to organizations include: late payment of wages/salaries, lack of compliance to statutory regulations, dishonesty, poor health and safety conditions, amongst others.
There are also organizations that experience serious challenges like staff retention challenges, employees lacking the level of skills and competencies required, dishonesty amongst employees that would lead to fraudulent activities such as theft.
These risks affect the organization’s ability to achieve its objectives, which is the essence as to why we do risk management. A risk is a future uncertain event that would affect the achievement of the organization’s objectives. A risk can either be a negative or positive risk. In this session we can address some of the uncertain events that may lead to people risks in organizations.
Addressing and managing people’s risk is crucial as it protects the reputation of the organization, ensures legal compliance, and fosters a positive work environment. Proactively managing these risks will lead to a higher employee retention and support in business continuity thus making the workplace attractive to talents and maintain a competitive edge in the market.
