Talking Risk

Chapter 4: Part I

Is there any specific area you want to look at?

So we ready to look at some real risk issues in the Bank?

Be careful what you ask for - with all your drama, you might turn out to be the biggest risk!

Well I overhear the pardner from Accounting talking about paying vendors and saying he ain’t want to pay anybody late. He did sound serious.

Yeah man, I really want to expand my knowledge in this risk management thing.

To pay on time and make sure the money right.

OK, so for vendor payments, what is the objective?

Yes, I agree, to effect timely and accurate vendor payments.

Well, there might be an internal delay in the process, so the bills end up being paid late.

Ok, let’s say it your way then, Ms Webster.

Well she didn’t sound like a dictionary or thesaurus just now with all them big terms? So much for keep things simple.

(Lord Help) So we have the objective. What might be some of the risks?

Webster?? I thought her surname was James.

If there is a delay in paying the bills the impact would be ‘low’ because its not like they not going to get paid, just maybe a week or so late.

Good – we have the objective and the risk. Let us assess the impact and likelihood and score them.

I didn’t say that, but not because it hasn’t happened, that doesn’t mean it can’t happen. If it does, ECCB could have a reputation for not paying its bills on time.

Oh, so in other words, it’s ok for word on the street that ECCB owe and wouldn’t pay on time?

You

hear

anybody saying that?