Communication, the Key to Sustainable Risk Management
PRINDONESIA.CO |
Tuesday,
December 03, 2019
All forms of risk should be minimized in order not to harm the company’s reputation.
Ratna/PR Indonesia
A risk management requires good communication skills. Namely, communication that is accompanied by data and facts, as experienced by Ahmad Siddik Badruddin, Risk Management Director of Bank Mandiri.
JAKARTA, PRINDONESIA.CO – The banking industry has changed greatly since the digital era. In the past, the biggest risk was loans with potentially bad credit. So, in the past five years, the biggest risk is operational risk. Especially if it is related to information technology.
“Credit risk is a risk that can be estimated and projected. While operational risk can happen at any time and the amount of loss can’t be predicted. We also have to compete and be smarter than the digital criminals,” said Siddik while speaking at the Roundtable Discussion WIKA – GRIMA event with the theme “Building Risk Leadership to Maintaining Corporate Sustainability” in Jakarta, mid-August 2019.
Siddik, who has been a risk management specialist for 29 years, said that such a vulnerable condition needs strong risk management. Therefore, find out first the maturity level of the risk management of the company where we work. “All risks can be handled well if the risk management manager is able to communicate clearly with data, facts, research, analysis of models, to historical traces,” said Siddik.
Sustainable
Magdalena Wenas, the founder of Strategic Reputation Management Indonesia, shared the same opinion. “Complexity is increasing rapidly in the VUCA era,” said the woman who has been known as reputation specialist and communication, analysis, and strategic auditor for three decades. “We are not only dealing with established threats but also rising threats such as cybersecurity to hackers,” she added.
In addition, there is a paradigm shift from closed versus open communication. Today, communication that is accompanied by data and facts can create a mighty power. Another challenge is in the era of open communication since the development of social media is that everyone in the organization can become a communicator.
Therefore, there needs to be operational risk management that consists of operational integrity and operational delivery. Thus, all forms of risk both originating from inside and outside the organization can be minimized in order not to harm the company’s reputation and the company can be sustained. “When we understand this, we can provide effective responses and recover quickly,” Magdalena said.
Magdalena summarized six main drivers of sustainability risk management, such as reputation and brand strength, competitive advantage and productivity, shareholder value increase, operational efficiency, financial efficiency, loyal HR and increasing intellectuals.
In building sustainable risk management, she also emphasized the importance of building good relations with all stakeholders. For example, good relations with the employees promise commitment, while with the media, it will impact on the wider distribution of positive information, with partners, it will open collaboration opportunities, and so on. “Make sure that in building relations, it contains elements of emotional appeal, quality communication, personalized messages, and clear,” Magdalena added.
According to Magdalena, reputation risk management can be trained by doing four phases. The first phase, conduct a reputation audit, then analyze the gap. The second phase, create a reputation platform. The third phase, choose the strategy and how to distribute the message, make management changes. The fourth stage, track its development using key metrics or other tracking tools. Then, score its development starting from the discovery phase, analysis, development, to research. (rtn)
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A risk management requires good communication skills. Namely, communication that is accompanied by data and facts, as experienced by Ahmad Siddik Badruddin, Risk Management Director of Bank Mandiri.
JAKARTA, PRINDONESIA.CO – The banking industry has changed greatly since the digital era. In the past, the biggest risk was loans with potentially bad credit. So, in the past five years, the biggest risk is operational risk. Especially if it is related to information technology.
“Credit risk is a risk that can be estimated and projected. While operational risk can happen at any time and the amount of loss can’t be predicted. We also have to compete and be smarter than the digital criminals,” said Siddik while speaking at the Roundtable Discussion WIKA – GRIMA event with the theme “Building Risk Leadership to Maintaining Corporate Sustainability” in Jakarta, mid-August 2019.
Siddik, who has been a risk management specialist for 29 years, said that such a vulnerable condition needs strong risk management. Therefore, find out first the maturity level of the risk management of the company where we work. “All risks can be handled well if the risk management manager is able to communicate clearly with data, facts, research, analysis of models, to historical traces,” said Siddik.
Sustainable
Magdalena Wenas, the founder of Strategic Reputation Management Indonesia, shared the same opinion. “Complexity is increasing rapidly in the VUCA era,” said the woman who has been known as reputation specialist and communication, analysis, and strategic auditor for three decades. “We are not only dealing with established threats but also rising threats such as cybersecurity to hackers,” she added.
In addition, there is a paradigm shift from closed versus open communication. Today, communication that is accompanied by data and facts can create a mighty power. Another challenge is in the era of open communication since the development of social media is that everyone in the organization can become a communicator.
Therefore, there needs to be operational risk management that consists of operational integrity and operational delivery. Thus, all forms of risk both originating from inside and outside the organization can be minimized in order not to harm the company’s reputation and the company can be sustained. “When we understand this, we can provide effective responses and recover quickly,” Magdalena said.
Magdalena summarized six main drivers of sustainability risk management, such as reputation and brand strength, competitive advantage and productivity, shareholder value increase, operational efficiency, financial efficiency, loyal HR and increasing intellectuals.
In building sustainable risk management, she also emphasized the importance of building good relations with all stakeholders. For example, good relations with the employees promise commitment, while with the media, it will impact on the wider distribution of positive information, with partners, it will open collaboration opportunities, and so on. “Make sure that in building relations, it contains elements of emotional appeal, quality communication, personalized messages, and clear,” Magdalena added.
According to Magdalena, reputation risk management can be trained by doing four phases. The first phase, conduct a reputation audit, then analyze the gap. The second phase, create a reputation platform. The third phase, choose the strategy and how to distribute the message, make management changes. The fourth stage, track its development using key metrics or other tracking tools. Then, score its development starting from the discovery phase, analysis, development, to research. (rtn)