Why ERM Fails

Mary Driscoll's picture

APQC recently spoke to Kristina Narvaez, President & CEO of ERM Strategies, about enterprise risk management (ERM). In the interview below, she talks about several factors that tend to undermine ERM programs.

APQC: What are the essential components of an effective ERM program?

 KN: First off, I have yet to find the perfect ERM program. Some organizations have been more successful at implementing their programs than others. So, let’s consider why.

Consolidate ERPs and Boost Finance Process Efficiency

Mary Driscoll's picture

One top priority for big company CFOs this year will be to cut the costs of financial management processes. Wait! Haven’t we seen this movie already? These costs have already been slashed over the past decade. Finance managers: prepare yourselves for “The Hangover Part III.”

EPM Integration Between Finance and Supply Chain: Worth the Challenge

Elizabeth Kaigh's picture

APQC recently talked to Dean Sorensen, founder of IBP Collaborative, on the benefits and challenges of integrating sales and operations planning (S&OP) and enterprise performance management (EPM) in finance and supply chain functions.

Dean Sorensen, a management consultant, helps organizations make step-change improvements to how they plan and manage their businesses. He helps organizations share innovative and integrated planning and performance management practices and technologies that enable these improvements.

How EPM2 Creates Value and Reduces Planning Costs

Elizabeth Kaigh's picture

In this short You Tube video, Dean Sorensen explains in simple terms the incremental business capabilities provided by the next generation of enterprise performance management (EPM), which he calls EPM2. These capabilities enable organizations to achieve financial, operational, and strategic objectives that are often undermined by fragmented and siloed planning models and processes.

Speedy Financial Closers Continuously Improve by Aligning Process and Technology

Elizabeth Kaigh's picture

In the chart below, we see that companies that prepare and file their quarterly statements in 10 or fewer days are top performers. Accounting close expert Gabe Zubizarreta presents an interesting nuance to this information: the very fastest companies actually spend 50 percent less than their bottom-performing counterparts.

cycle time between completion of quarterly consolidated financial statements and release of earnings

In Finance, Big Data has Big Potential (and Potential for Big Disasters)

Mary Driscoll's picture

In this day and age, a company has to know—and not guess at—the ways in which non-financial factors impact financial results. And business leaders need finance teams, with their vast and natural analytical skills, to help them compete on facts and develop highly educated views on cause-and-effect scenarios.

For example: “If we bundle products and services in various ways and model various pricing options, what can we reasonably expect in terms of (a) customer retention, (b) increased revenue, and (c) impact on margin targets?”

Collaboration for Process Improvement: Getting It Together

Holly Lyke-Ho-Gland's picture

How often do we start something only to discover we have to go back to square one because we overlooked an important stakeholder?

Financial Management Spotlight: In Lean Management System, CFO Must Focus on Spending, Not Cost

Elizabeth Kaigh's picture

APQC recently interviewed Nick Katko, Senior Consultant with BMA Inc., about the challenges a CFO faces when a company decides to use a Lean management system.

Why and How Often to Benchmark Finance

Mary Driscoll's picture

The cost of finance operations at the typical large company has been cut in half over the past decade. CFOs got what they wanted: talented and dedicated people doing more with less, and those with a knack for stats polishing their analytical contributions. So, I got to wondering: what’s behind the recent mini-surge in core financial management (FM) process benchmarking?