Why upgrade to enterprise risk management?

The Global Financial Crisis taught us the importance of robust risk management practices in identifying and addressing issues that have the potential to impact on overall business objectives. Many organisations have implemented risk management programs, however a significant proportion of these have yet to realise the benefits of upgrading their programs to best-practice Enterprise Risk Management.

What’s the problem with traditional risk management programs?

Historically, risk management has tended to focus only on the negative – how do we identify what might go wrong? How bad will things get if it does? How can we stop it?

Another feature of old-fashioned risk management has been the tendency for it to be “siloed”, with each section of an organisation having its own approach to managing risk.

Modern, best practice Enterprise Risk Management has moved contemporary risk management programs and thinking beyond these limitations.

Why is Enterprise Risk Management better?

Enterprise Risk Management (also known as ERM) has a range of benefits for contemporary businesses:

  • ERM achieves efficiencies across the whole of the organisation by integrating a common approach throughout all functional areas.
  • ERM avoids the pitfall of concentrating on minor risks (such as slip hazards) at the expense of big picture risks (such as failure of critical infrastructure).
  • ERM captures the positive side of risk management, by also considering opportunities for new services, process efficiencies, improved methods of service delivery etc.

What strategies assist adoption of Enterprise Risk Management?

 

QRMC frequently assists organisations to develop or expand their risk management programs to embrace Enterprise Risk Management. Our experience suggests that useful strategies to successfully move to Enterprise Risk Management include:

  • Strong committed, visible leadership.
  • Recognising that risk management is an ongoing (not once-off) process.
  • Treating risk management as a tool to achieve business objectives, not as a compliance exercise.
  • Extensive consultation with, and training of, personnel (at all levels).
  • Consistently integrating ERM across all systems and functional areas within the organisation.

Special considerations for business or department amalgamation

 

A regular feature of contemporary business is the process of amalgamation, either of existing segments of an organisation, or of one business with a completely independent second business (M&A).

Determining the business objectives of a new organisation formed in this way is not always a straightforward exercise. The clarity provided by the risk management process greatly assists this determination.

However, amalgamation poses particular difficulties when it comes to the risk management program:

  1. There are often difficulties involved in assimilating risk-related information from different sources, produced using different methods.
  2. Amalgamation poses the threat of extending the commonly experienced problem of risk management “silos” (as mentioned above) even further by creating silos based on the original business or department entities.

On the positive side, these difficulties present an opportunity to reach solutions by upgrading existing risk management systems to Enterprise Risk Management. Moving the new entity to Enterprise Risk Management provides opportunities to:

  1. Clearly identify the objectives of the new entity, and what risks and opportunities exist in achieving these objectives.
  2. Break down barriers and foster a new organisation-wide approach to risk management and the determination of uniform risk appetite.

Next steps

 

Risk management as a discipline has proven its value over time. Now businesses can extend this value even further by upgrading to Enterprise Risk Management.

For more information on Enterprise Risk Management, safety management, business continuity management and management systems, contact us. We are experts in providing independent and objective facilitation of the process of upgrading or developing new Enterprise Risk Management programs. You can also access other informative articles on our News page dealing with Enterprise Risk Management, as well as newsletters downloadable from our Publications page covering Enterprise Risk Management issues.

Can I really save fuel with a Truck Wheel Alignment?

Most heavy vehicle owners in the transport industry are asking themselves – How can I save money on my running costs? How can I save on fuel consumption? Will a truck wheel alignment help?

Research & studies conducted around the world show that around 80 percent of medium to heavy vehicles are incorrectly aligned, or have a mis-alignment. If your truck, trailer or bus has incorrectly aligned wheels & axles, you have what we call increased rolling resistance when travelling on the road. This means the engine is working harder than required to push the truck along the road, and the end result is an increase in fuel consumption. Given that fuel can account for up to 50% of the operating costs of a truck or fleet, smart operators must explore all avenues to reduce fuel consumption.
Generally speaking, correcting even slight alignment issues have been shown to result in a saving of 3 – 10 percent on fuel.

3% doesn’t sound too significant does it? Lets take a closer look – One truck runs Brisbane to Sydney (return) 3 times a week (6,000 kms). That’s 312,000 kms a year. Fuel consumption average is 1.85 litres/km. That’s 577,200 litres, current local prices are around $1.49 per litre. Fuel cost for the year – $860,028.00. If you reduced fuel consumption by 3%, you would save $25,800.84!!
Your scenario may be different, but you can see that small changes can make a big difference to the bottom line of your business. There are other areas where you can save on running costs, which will be covered in another article.

If you own one truck or one hundred, and you are not having a regular truck wheel alignment performed as part of your maintenance schedule, you really need to contact your local truck wheel alignment specialist for a chat.

Truckologist is a mobile truck wheel alignment business based in Brisbane, Australia.

Cladding Mackay – Consider Vinyl Cladding Over Painting

Over the past several decades, more and more people have become aware of the numerous benefits of modern vinyl cladding and started to use it instead of paint. Paint is a great choice if you plan on selling the house in the near future since it does not involve a major investment, but if you want to make your home more comfortable, then vinyl cladding is the best choice. The truth is that vinyl cladding does have a series of advantages that should be taken into account if you want to get the best quality for your money. Here you will find the most important benefits:

What Is Vinyl Cladding?
In order to fully understand its benefits, you must firstly know what vinyl cladding is. In a nutshell, this is a type of cladding made from PVC combined with several other substances that aim to increase durability. This material is fixed on the exterior of your home to improve its overall aspect and also for improving thermal performance. Paint, on the other hand, is used only for improving the aspect of your home and it does not improve the thermal performance of your house in any way.

This type of cladding is also very durable in the long run, unlike paint which peels off and loses its intensity thoughout the years. This is possible with the help of the acrylic components found in vinyl cladding, which help it stand the test of time – and weather! It does not rot or crust, and it can last for decades even in the harshest weather conditions.

One of the most important advantages of this type of cladding is that unlike paint, it is very easy to maintain in the long run, and it adds value to your home. Paint is difficult to maintain over the years as it can easily deteriorate, but fortunately this is not the case with this type of cladding: you can easily wash it with a sprayer and some mild detergent once in a while, and that is it! It is true that vinyl cladding does require an initial investment, but the quality and the comfort are certainly worth it. Besides, this will also lower your energy bills.

Vinyl cladding is undoubtedly one of the most affordable and versatile cladding options: you can easily adapt it in order to match the overall style of your home, no matter if you own a traditional or a modern house. All you need in order to make your home stylish and unique is some high-quality products and a little bit of creativity. Besides, it is so affordable that you can even clad your entire home with it without having to spend a little fortune!

Last but certainly not least, another great benefit of this type of cladding is that it comes with an important warranty that confirms the quality and the durability of the material. This warranty will give you the peace of mind you need: your investment is fully protected, should anything happen with the cladding.

In conclusion, these are the main advantages of vinyl cladding over painting. Painting may be cheaper, but it is less durable in the long run, it does involve some maintenance costs, it can easily peel off and it does not improve the thermal performance. On the other hand, vinyl cladding is extremely durable, affordable, easy to maintain, it adds extra style to your home and it improves thermal performance as well. For cladding Mackay contact Prestige Exteriors today. Make sure you check out the before and after photo gallery.

The Significance Of Building Inspections When Buying A Home

Whether it is your first house, your retirement house or your vacation house, buying a house is a significant milestone in your life. It is not only a huge financial investment but also an emotional one. When buying a home one should put into consideration various factors such as its pricing range, its location, size, peripheral expenses and most of all the condition of the house. That is where a building inspection comes in. A building inspection is an invaluable, visual, non-invasive inspection of a property. It attempts to identify significant building defects, gradual deterioration, safety hazards or inferior building work to name a few. A pre-purchase house inspection may also identify issues that are unknown to the vendor. It is therefore a paramount undertaking.

1. Building defects
During home inspection ceiling stains, roofing defects, rotted wood, faulty ground drainage and electrical safety violations are common defects found in the houses. This does not mean that the house is in need of major replacements, but that it is in need of maintenance and repair. This underscores the significance of a thorough evaluation of the building by a competent house inspector. The inspectors examine the house from top to bottom with their knowledge and expertise to deliver a detailed report which is vital in your decision on whether to buy the house.

2. Gradual deterioration
A house is an expensive purchase and one could regret the decision of buying a house if faced with extra and unexpected expenses such as repair bills. During a pre-purchase house inspection, the building surveyor looks for damages caused by gradually operating causes. These include; rot, rust, corrosion, denting or chipping. If one buys a house experiencing such problems, it is impossible for them to acquire an insurance policy that covers such losses since it is mostly excluded from the policy. It is thus critically important for the buyer to request an inspection report.

3. Safety hazards
Safety is a significant factor to consider when buying a home. Most homes be it new or old have life-threatening defects that can remain undiscovered until too late. These can range from ungrounded electrical outlets, exposed hot wires in junction boxes, faulty gas piping and faulty water heaters. If left unchecked the damage and harm that may occur can be quite extensive. This is among the reasons why it is recommended to employ the services of a building surveyor to identify such hazards before buying a house.

4. Inferior building work
This refers to failure to construct the building in a reasonably workmanlike manner. The building therefore fails to perform in a manner that was reasonably intended by the buyer. Design, material and workmanship are some of the common deficiencies found in most homes. Design architects may design a building and system that fails to work as specified resulting in a defect. The use of inferior building materials may also result in defects that cause significant problems such as leaking windows. Poor quality workmanship may result in defects such as cracks in wall foundations, plumbing leaks and electrical or mechanical problems. This undeniably shows the need of hiring a home inspector to point out such potential problems that could require costly repairs down the road.

5. Saves your money
Though it may be rather expensive to hire an experienced building surveyor, in the long run it proves to be a quite indispensable undertaking when it comes to saving your money .A certified home inspector combs a property to identify almost all its problems. The comprehensive report received from the inspector gives you the information needed to decide whether or not to buy the home in its present state, re-negotiate or have the seller fix some of the problems. In most cases, after a thorough house inspection the seller reduces the price of the house or fixes the various defects found in the home. This saves the buyer a substantial amount of money.

Hiring a building inspector is evidently vital during the home-buying process. Buying a home without one is similar to buying a car without even kicking the tires. Therefore, if you are ready to start house hunting make sure you are accompanied by a house inspector. Building inspections is the ultimate way to avoid maknig blunders when you want to purchase a new home.

Stacked Stone Sydney

If you are looking for a place to get only the highest quality Stacked Stone Sydney has available then look no further than with Craftstoneoz.com.au. Craftstoneoz.com.au is able to deliver the unique beauty that a natural looking stone cladding wall has to offer. A stone feature wall made out of pure natural stone is very rare these days. It may have been commonplace eons ago but in this day and age the supply of very fine and beautifully crafted natural stone has dwindled to the point where it can be extremely expensive. Craftstoneoz.com.au gives the best solution if you truly want to have the best Stacked Stone Sydney can ever have.

The solution is in the material. Instead of scouring the world for very rare and pure natural stone, Craftstoneoz.com.au molds replicas from a mix of cement, pumice and other materials. Even if you were to take a magnifying glass and inspect the stone pieces very closely you will not find any difference between these products and real, natural stones. The color blends all the way through the product so even if you were to break a piece and shatter it on the ground, the color would be the same all throughout the broken shards, making them appear even more authentic.

You do not need to worry about any event of repetition either. When molding, over a few thousand molding models are used that will essentially remove any possibility of repetition. Another thing to note is that all of the stones are colored one by one, therefore there will never be any two stones that are exactly the same. You could inspect every stone installed onto your wall and you will never find any two identical stones.

No matter how you look at the replicas they will look and feel like the real thing. All of the molds are designed to be almost identical to natural stones and the process in making them ensures that each one is applicable to the construct. Craftstoneoz.com.au stone feature structures are best suited for walls. Since they are lightweight and can be cut by construction equipment they are not suited for walkways, fountains or patios and others. They are best when designed for a wall, post, or other side structure that will not be walked upon. They can be placed outside or inside, making them the best pieces for building stone fences around your house, the BBQ area or if you want to create a unique, natural looking façade of your home or establishment.

The best thing is that all of these stones are lightweight and make for a very beautiful Stacked Stone Sydney has ever seen. They are compatible to be installed onto any kind of material, making any kind of wall or post suitable to have stones installed over them. This will give your home or establishment a fresh and yet comforting new look that brings the natural beauty of the world and nature right into your doorstep. Craftstoneoz.com.au offers a total of nineteen different textures and over eighty colors that will guarantee you get the best designed Stacked Stone Sydney has to offer.