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Presentation on the PRAY model from RiskPro.

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  • 1. PRAYPeopleRiskAssessment&YieldRiskpro,India 1

2. BackgroundandChallengestoPeopleRiskBACKGROUNDp IndiaisPeoplecentric.InaglobalcontextmanpoweroutsourcingcomestoIndiaand hastobeapartoftheirGlobalSolution.p Allcompaniesrelyonefficient,honestandeffectivepeopletogrowandcreatebusiness valuep Peopleriskmanagementgoesbeyondhiringgoodpeopleandcarryingoutannual performanceevaluation.CHALLENGESp Peopleriskisoftenforgotten,neglected.Companiesbuildmodels,frameworkstomanagerisk..but ignorePeoplethemselvesp Peopleare,indirectlyordirectly,atthecoreofallrisks n Startingwiththewaytheyaretheirbackground,earlychildhood,howtheygottobewheretheyarepersonal&familylife.Debt,Gambling,indulgenttothegoodlife?p UnlikeLogistics,Finance,Marketing,Sales,Distributionetc.theriskrelatedtoPeoplehasarangeof differentlocal,regional,enterprise,cultural&globalimplications.p Mostcompaniesdonothavequantitativescoreormetricthatmeasurespeoplerisklevels.2 3. ThePeopleRiskLandscape People Actions CostsBehaviouralEmployeesOrderAcceptance DirectORIndirectStoppedLearningTEMPSProcurementFixedORVariable EgoAlphaMaleGhostEmployees WrongVendor NotInsuredNoSuccessionPlanningWrongHiring SuppliersObsolescenceHighRiskBehavourRework&Waste CateringStaff PoorDueDiligencePersonalDebt Housekeeping LiableforLitigation NegligenceGreed SecurityStaff Graft(CORRUPTION)ClinicalProblem(s)Drivers 100%RevenueLoss Cartel IncreasedCostLongtermconsequenceCustomers PoorDecisionsLowerProfits 3 4. HowPeoplesACTIONSincreasesordecreasesrisksp EVERYDecisionthatapersontakesaffectsRevenue,Collection,Expenses,Payables,project orultimatelythebottomlineofthecompany.p NegligenceORwantondelayaddstoinefficiencies,projectdelays,increasedcycletimes, lowercustomerorsuppliersatisfactionandcanevenjeopardizetheTransactionp Onceathiefalwaysathiefp Failuretoproperlyverifyachequepaymentforalargesum.p Misbehaviorwithcolleaguesp Writingdegradingemailsaboutcompaniestoexternalpartiesp Newsandprintnewsaboutemployeesduetotheirpersonallifestyle,behavior Allsuchbehaviorsarenotedbymanagement,employeeswarnedoranotemadeintheirpersonalfiles.Butnotrackingtakentoconsolidatethisinformation,seeanoverallriskscoreofthateachemployeeoratthecompanylevel. Decisionmakingdelays,processinefficiencies,badleadershipallrequiresomequantification andaggregationtohighlightyourSTARperformingemployeesandthebadones. andaggregationtohighlightyourSTARperformingemployeesandthebadones.4 5. ThePeopleRiskParetophilosophy&Focusp 20%ofthePeoplefrom 20%ofFactorsaccount for80%oftheRiskand 80%ofthecontrollable Financialsinany Enterprise.p Companiesneedto addresstheemployees thataccountforlarge riskfactors ThePRAYtrickistounderstandwhich20%causes thewhat80%onaregularandperiodicbasis. 5 6. PRAYBottomUpApproachtoRiskManagement Seeexamplesonnextslide6 7. PeopleRiskManagementOtherInputstotheModelp HRDepartmentInputsn Skillssetgap,successionplanning,outstandingjobsunfilled.AllHRinputscanbeconsideredby PRAYtomodelsomelevelofriskscoreatentitylevel.p RecruitmentVerificationn Resultsofinternal,externalverification,duediligencep RiskRegistern Inventoryofknownrisksrelatingtopeoplerisk.AggregatescoreofcompanywideHRRisk registerp IncidentReportingandIssuesManagementDatabasen Responsibleforhowmuchoffinanciallosses,numberofeventsbythepersons,allincidents withevidencesupport.Audio,Video,Documentsetcp PerformanceAppraisalSystemn AddriskelementstoexistingSystems,Methods&Practicep ReportingSystemn PredictiveandPreempts.RealtimeAlerts.Yesterday,Lastweek,Lastmonth,Lastquarterand Lastyearknowledge.Why?Who?Whatfor? 7 8. RiskofPeoplemismatchManpowerPlanningNOTEducation alignedtomarketSystemQualityQualificationsreality.CertificationPoorVendorDuediligence ExperienceRiskAversionRECRUITMENTapathy JobDescriptionCapableTrainersareotherwiseengaged Background Check(s)FAILUREinadequate TrainingDays PersonsAbilitiesFailureIntolerance 1.Project(s)Delayed.PracticalApplicationOnthejobTraining 2.CostOverruns.Lowerprofit. 3.UnhappyCustomer(s).LackofEmpowerment 4.ReducingEmployeemorale. 5.Dropinshareholdervalue 8 9. SkillsShortfallRiskCompetencyorSkillGapsDemandvsSupply.TimetoreskillORInabilitytoLearn.Resource(s)Shortfall(s) 9 10. PRAYCo mplian ceMakingPeopleRiskManagementCleverandVisible10 11. ThePRAYModelRootsReporteesResourcesPositioninOrganisationPeopleAccountability ResourcesAccountabilityJobDescription SigmaofallReportees Direct&IndirectCostsLongevityinEnterprise NonperformanceExposure Fixed&VariableCostsTrustwithinEnterprise PRAYnowbecomesCYCLICLiabilityExposureCurrent&PastRecordProjectDelayExposure1. PromotionHigherAuthority 1. NonPerformance 1. PunishmentforFailure2. Bonuses&Incentives 2. Apathy.Demotivated2. TimeSkimming3. Payrise 3. Negligence. 3. ResourcesSkimming4. MoreResponsibility4. HighRiskBehaviour 4. CartelUnionisation5. IncreasedAccountability 5. Notwillingtotakerisks 5. Insubordination6. Awards&Recognition 6. PoorDecisionMaking6. Theft7. NegligentHiringGood 8. LackofTrainingBad UglyDecisionMakingHRIS/HRMSPMS i3SQualityHCMIndividaul&GroupMetricEnablerComponents11 12. ImplementationOptions Simple ORComplexAdvancedEVERYemployeestartsatlevel5. Return=Reward/Risk SingleDimension 3Dimensional/ 12 13. PRAYCalibrationCustomizedforyourexactneeds InitialPRAYmodelfor TheBenchmarkimplementationatyourcompanyPRAYModelFinalPRAYmodelthatworksforyouPRAY VersionRetail HealthcareBIFSSecurity 1.0WorkingYesforyou? IndustryAdaptation(s)&TemplatePRAYno Current VersionPRAYModelNapplicabletoManagementyourrequested customizationINDUSTRYCalibrate Subareas&Weights Change 13 14. ExampleIndustryCalibrationLogisticsMainCategoryRiskFactorsmodeledWeightage SkillsGapbetweenMarketand Internal Recruitment DemandSupplyFactorsTraining Availabilityofgoodskilledresources Backgroundchecks 20% PositionJobMatchFactors Current WorkJobDescription KnowledgeofLogisticsindustry 20% Organisational Factors PeriodicPerformance and Appraisal PeriodicSafety;SecurityandSurveillances OntheJobOperationalFactors Incidents ReputationRisk Unauthorised receiptsandexpenditure Revenueleakage 30% BeyondWorkingHourFactorsInvolving Others InvolvingFamily 10%CompanydefinedriskfactorsCompanydefinedcategoryCompanyspecificriskfactors 20% 14 15. PeopleRiskModelSingleDimensionViewASINGLEaggregatedPeopleRiskScoreforthewholeorganization 15 16. ScreenshotsPeopleRiskModelCompanyViewDetailedAggregatedDashboardsacrossRiskMetricsareavailableforseniormanagementtomonitorPeopleRiskLandscape ColoredHeatMaps ensureswiftdecision forpriorityissues(Red areas) 16 17. EmployeeInformationSystem(ImportrequiredfieldsONLY)WhilestandalonetheRiskProclextraPRAYmodelwouldrequireminimalstructuredkeybasedinformationaboutStaff.Thiscanbeexported,importedormanuallymaintainedasneeded. 17 18. ScreenshotsManualEntrybasedonPRAYModelSupervisor/HRDeptcompleteAnnualRiskAssessmentforeachemployeebasedonpredefinedRiskMetrics Aggregatescoreofthe Assessmentisoneofthe inputsforoverallEmployee RiskScoreforthatemployee18 19. RankingReportHighesttoLeastRiskArangeofoptionsandlinksareavailableOnlineQueryOfflinePrintingListsofallRatings6levelPercentileRanking.GroupingonarangeofFactors.BehavioralLinksIncidentsDatabasesPerformanceAppraisalLinks 19 20. RankingandNwiselistingsanddrilldownpossibilities GroupandSubGroup Listings.. Designationwise Qualificationswise GeographicLocation wise AgeBandwise ExperienceBandwise Shiftwise Grade(or Compensation)wise Batchwise Superior1,2or3wise. UserdefinedCampaign wise SkillSetswise 20 21. TheclextraHCMbasedRewardssideManagementp CompensationPlanning. n Fixedand/orVariable. n LinkedtoSales.Performance.p IncentivesAdministration. n TargetActual=Gap n LinkedtoFinancials.p LoyaltyPointsManagementSystem(dapa) n Points(orCash)basedSystem 21 22. ExamplesofParametersformodelingpeoplerisk BeyondWorkingHourFactorsInvolvingSelfHighRiskHobbies;Alpha;AggressiveGambling;SpeculationDrinking;DrugsGreedyOppositeSexIssuesBeliefssuchasFaith/ReligionInvolvingFamilyEmotionalPressuresFinancialPressureDysfunctionalFactorsInvolvingOthersBadcompanyRiskRatingTrackRecordLitigationLegalActionRiskq Abovearejustsomeofthehundredsofparametersandinputsthatreusedtomodelpeopleriskscore.q Allparameterscanbecustomizedsperclientrequirement,orcanbeeasilyconfigured(ON/OFF)by companysadministrator.q Ratingweightsandscorecanbeconfiguredinconsultationwithcompanymanagementsothatimportant factorsaregivenmoreweightageandthusarrivingatanaccurateriskindicator factorsaregivenmoreweightageandthusarrivingatanaccurateriskindicator 22 23. PeopleRiskevenwhenoutsidetheEnterprise 9to5EmployeeA MonFriLifestyle 5to9Support. SatSun Creche. EmployeeB Spouse? LifestyleNamaaz/Pujas EmployeeCLifestyle Children?Loans. Religion?PPF.401KDebt?EmployeeDDatingLifestyle Savings? HouseZineMarriages.EmployeeE Ceremonies? Lifestyle EmployeeZ Gambling? LifestyleBadCompany?Graft?Organisation IPRTheft?CultureLooseTalk?23 24. ImplementationOverviewq Implementationtimelinesaroundonemonthq 12Consultantforprojectexecutionsupportedbyateamofclientemployees/ourjuniorstafffordata gatheringandquestionnairecompletionq Implementationcostsdependsuponnumberofemployees,depthofparameterizationq SaaSandlicensemodelsdependinguponclientsbudgets CloudhostingoptionsaslowasRs20,000permonthforentireenterpriseq CloudhostingoptionsaslowasRs20,000permonthforentireenterprise24 25. WhoisRiskproWhyus? ABOUTUS MISSIONq Riskproisanorganisationofmemberfirms aroundIndiadevotedtoclientserviceq Provideintegratedriskmanagement excellence.Memberfirmsofferwiderange consultingservicestomidlargesized ofservicesinthefieldofriskmanagement. corporate/financialinstitutionsinIndiaq Currentlyithasofficesinthreemajorcitiesq Bethepreferredserviceproviderfor Mumbai,DelhiandBangaloreandalliancescompleteGovernance,Riskand inothercities. Compliance(GRC)solutions.q Managedbyexperiencedprofessionalswith experiencesspanningvariousindustries. VALUEPROPOSITION DIFFERENTIATORSq Yougetqualityadvisory,normallydelivered bylargeconsu