未来企业风险绩效管理外文翻译

1、未来企业风险绩效管理【外文翻译】本科毕业论文 （ 设计）文翻译外原文: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.译文:未来企业风险绩效管理一旦一个组织变得相当成功 ,就意味着它开始冒险。冒险 ,虽然合理风险 ,是十 分必要的组织能够改变和创新。企业绩效管理定

50、义为 : 更广阔的伞的综合概念方法比其先前更广泛的定义 是仪表板和更好的财务报告。还有什么能成为一个更加广阔的定义吗 ? 企业绩效管 理是一个整体非常重要的一部分 , 无论在商业和公共部门的组织，是一个组织实现 其战略价值最大化利益相关者。这意味着企业绩效管理必须联系到的首要的理念 企业风险管理。一个流行的首字母缩写词是“ GRC (统治、风险和合规性)。你可以考虑治理 ( G )为管理的管理人员行为举止要负责的方式 , 例如提供一个安全的工作环境或制定有效的策略。合规即在法律法规下进行操作。风险管理是“ GRC的第三个元素，它 与绩效管理更为相关。义务和责任是不可避免的。如果主管在合规性上犯

51、了错 , 他们就有可能进监 狱。因此 , 内部审计控制已经被加强。GRC勺“ R也有类似的性能特点管理。对于风险的基础和绩效管理分享二种信 念:1 未来的不确定性越少越好。2如果你不能测量 , 你就不能做到。风险的机会或危险 ?企业风险管理不是曝光组织最小的风险，而是将风险开发使它的竞争力最大 化。一种有风险的业务策略和计划总是带着高价。举例来说 , 投资分析师不知道的 一个公司或他们若结果的问题将会和不确定性增加了额外的资本成本或贴现公司股 票的价值。不确定性会包括准确性、完整性、顺应性和及时性。有效的风险管理措施可以综合识别和评估所有潜在的风险。其目标是减少波动 有更大的可预见性 ,更少的

52、突然袭击 , 并且风险事件发生后能够很快就恢复。一个简单的观点风险是更多的事情在预料之外发生了。如果我们可以设计可能 结果的概率,那么我们就能考虑我们将会处理的突然袭击我们所期待的是不同 的结果。我们可以在预期内较好地评估是错误的后果。简而言之 , 风险管理是关于 提前处理错误的结果。当风险有利于未来就会被视为有一个机会 , 反之风险会看作是一种危险。例如, 一场阵雨对一个正在户外举办艺术博览会的艺术家是一个灾难 , 但对雨伞的 销售员却又是一个巨大的机会。风险和机会同时存在有相同的 , 它是关于未来事件 , 它可能发生 , 也可能不会发生。他们的演化可以辨识 ,但其影响的大小是不确定的。风险

53、常常让人联想到新的花费 , 因为他们可能会变成问题。相比之下 , 机会可以 关联到新的经济价值创造如增加了收入 , 因为他们可能会变成效益。大多数机构不 能量化他们的风险 , 相对于他们的风险偏好的风险，没有普遍的基础。风险偏好是 指为了实现目标，企业或个体投资者在承担风险的种类、大小等方面的基本态度。风险就是一种不确定性，投资实体面对这种不确定性所表现出的态度、倾向便是其 风险偏好的具体体现。企业风险管理不仅仅是应急规划。它首先认识到系统的测量不确定度的来源并 运用定量方法来衡量和评估的三个要素1 某一事件发生的可能性。2某一事件的严重影响。3 管理的能力和效力对事件的回应。基于这些因素 , 企业风险管理可以识别其各种各样的风险 , 风险交替作用和相关 费用可能减轻。风险类型要认定的数以百计潜在的风险，是件令人气馁的事。因此 , 企业风险管理可以 更好地理解分类各种各样的风险。例如 , 确认的风险可能被分组作为战略、财务、 操作或危险。或者他们可能被分组外在或内部、可控性或无法控制。选择是这四类 风险的归类 :1市场和价格风险。越来越多的风险提供产品或服务供给或咄咄逼人的降价从 竞争者将迫使降低价格 , 并且因此利润。2 信贷风险。有风险客户就会不支付他们