Robert Kugel's Analyst Perspectives

Oversight Systems Focuses on Saving Money and Preventing Fraud

Posted by Robert Kugel on May 31, 2012 11:26:44 AM

I recently spoke with Oversight Systems, an operational intelligence analytics company that uses predictive analytics and optimization to help companies save money, reduce the risk of loss and fraud, and reinforce corporate governance and compliance efforts. Ventana Research views operational intelligence as an emerging technology with the potential for a high return on investment. By continuously monitoring activities in a company’s IT systems, Oversight’s Web-based software continuously, consistently and objectively monitors all business processes to identifies opportunities to save money, cut fraud, minimize risk and provide real-time controls to support governance.

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Topics: Big Data, Predictive Analytics, Fraud, Governance, GRC, Office of Finance, Operational Performance Management (OPM), audit, Analytics, Business Analytics, Cloud Computing, Governance, Risk & Compliance (GRC), Operational Intelligence, Business Performance Management (BPM), Financial Performance Management (FPM), Information Management (IM), Sales Performance Management (SPM), Supply Chain Performance Management (SCPM), controls, Oversight Systems

IBM Displays Software for GRC at Vision 2012

Posted by Robert Kugel on May 22, 2012 12:22:27 PM

I recently attended Vision 2012, IBM’s conference for users of its financial governance, risk management and performance optimization software. I reviewed the finance portion of the program in a previous blog. I’ve been commenting on governance, risk and compliance (GRC) for several years, often with the caveat that GRC is a catch-all term invented by industry analysts initially to cover a broad set of individual software applications. Each of these was designed to address specific requirements across a spectrum of users in operations, IT and Finance within a company, often to meet the needs for a specific industry such as financial services or pharmaceuticals. Vision 2012 covered a lot of ground under the GRC heading, confirming the breadth of both this software category and IBM’s offerings in it. I want to focus on two areas: automation of IT governance activities and effective management of GRC-related data.

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Topics: Governance, GRC, Office of Finance, Operational Performance Management (OPM), OpenPages, Analytics, Business Collaboration, IBM, Business Performance Management (BPM), compliance, Financial Performance Management (FPM), controls, IT controls

Action-Oriented Analytics Can Help Manage Risk

Posted by Robert Kugel on Jan 12, 2012 9:37:08 AM

Risk has always been an integral part of business, but as I’ve noted, companies deal with risk with varying degrees of effectiveness. A complex, ongoing process, operational risk management identifies risks to support successful operations of an organization, estimates the monetary and other measurable impacts if a risk event occurs, establishes methods for mitigating the severity of impacts should they occur, continuously measures the probability of a risk occurring within a relevant period of time, periodically reports on the risk environment to appropriate decision-makers and alerts executives and managers when risk thresholds are crossed. These important activities should make operational risk management of greater interest to executives in today’s volatile business environment.

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Topics: Big Data, Performance Management, Governance, GRC, Office of Finance, Operational Performance Management (OPM), Reporting, balanced scorecard, enterprise risk management, KRI, Business Analytics, In-memory, Business Performance Management (BPM), Financial Performance Management (FPM), Risk, Sales Performance Management (SPM)

Risk Analytics Has Benefits for Optimizing Performance

Posted by Robert Kugel on Nov 15, 2011 11:09:41 AM

Risk has always been an integral part of business, but dealing effectively with risk is a progression. Indeed, history shows businesses adapting and coping better with risk through innovation. The importance of using information technology to manage risk is growing because today’s systems can automatically measure and analyze a much broader set of risk factors than individuals can, and do so more reliably. But a key challenge companies face in implementing enterprise risk management is developing a process for defining and measuring risk.

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Topics: Governance, GRC, Office of Finance, Operational Performance Management (OPM), Reporting, balanced scorecard, enterprise risk management, KRI, Business Analytics, Business Performance Management (BPM), Financial Performance Management (FPM), Risk, Sales Performance Management (SPM)

The Value and Limits of the Term “GRC”

Posted by Robert Kugel on Oct 11, 2011 10:40:02 AM

My colleague Mark Smith and I have frequently commented on the artificiality of the emerging software category governance, risk and compliance (GRC). To be sure, once stand-alone categories of software (IT governance, audit documentation and industry-specific compliance management, to name three examples) have started what I expect to be a long convergence process. Moreover, since just about all controls and risk management efforts require a secure IT environment to be effective, there is a growing interdependence between effective IT governance and everything else connected with enterprise GRC.

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Topics: Customer Experience, Governance, GRC, Office of Finance, Operational Performance Management (OPM), enterprise risk management, ERM, Business Performance Management (BPM), compliance, Financial Performance Management (FPM), Risk, controls, IT governance

OpenPages 6.0 Enhances GRC by Integrating Data and Text

Posted by Robert Kugel on Apr 20, 2011 7:41:25 AM

Although I continue to believe that governance, risk and compliance (GRC) is not a firm software category, software vendors continue to add depth and breadth to their offerings that support corporate governance, help manage risks systemically in business and IT and provide greater visibility into compliance efforts. For example, with its release of OpenPages 6.0 IBM had made an important enhancement by marrying the document management capabilities of its OpenPages acquisition with Cognos’s Analysis Studio. Although automating documentation of regulatory compliance and risk management functions has value (in the sense of lowering the cost and increasing the probability of full compliance), incorporating analytics and the ability to perform contingency planning in concert with document-driven processes potentially multiplies the business value of such automation.

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Topics: Governance, GRC, Office of Finance, Operational Performance Management (OPM), Chief Risk Officer, Business Intelligence, Business Performance Management (BPM), compliance, Financial Performance Management (FPM), IT Performance Management (ITPM), Risk, Internal Audit

Enterprise Risk Management Addresses the Agency Dilemma

Posted by Robert Kugel on Jan 28, 2011 3:52:13 PM

I have written before about enterprise risk management, which is an essential piece of both performance management and corporate governance. Every aspect of business entails risk. Everyone who makes a business decision is – whether consciously or not – making trade-offs between risk and reward. Assessing risk is tricky in business because it means different things to different people depending on where they work and their specific role in an organization. From a broad view, risk management becomes an “enterprise” issue for three reasons. One is to ensure that risk management is harmonized across the company and consistent with the corporation’s risk tolerance. A second purpose is to manage cross-functional risks – things that happen in one part of the company can have negative impacts on other areas. The third is to address the risk elements of what’s called the agency dilemma.

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Topics: Governance, GRC, Office of Finance, Operational Performance Management (OPM), Business Performance Management (BPM), CFO, compliance, Financial Performance Management (FPM)