© Copper Bottom Mentoring Of Whales and Sharks Ideas for those who want to make a difference Richard Gossage Ideas for those who want to make a difference

© Copper Bottom Mentoring

Of Whales and SharksIdeas for those who want to make a difference

Richard Gossage

© Copper Bottom MentoringCopper Bottom ©

If the risk messages are understood by

the board they will do a better job of

taking & managing risks


‘Let’s be clear - I didn't become a trusted chairman by trying to please.’

Copper Bottom ©

‘Eagles may soar …’



- Ricky Gervais, The Office


‘…but weasels don’t get stuck in jet engines’


Who wants to be an NED?

Australian Regulatory Change - Jan 1st, 2015

• A Chief Risk Officer, who is not the CEO or CFO • A Board Risk Committee made up of independent

directors, responsible for setting risk appetite, establishing risk strategy AND ensuring there is a sound risk culture

• Key Board endorsed documents –Risk Appetite Statement, Risk Management Strategy, ICAAP, Business Plan (new in parts)

• Policies & procedures setting out how risks are identified, measured, monitored & reported, including modelling & model risk

• Risk Management Information Systems to capture and report risk information, including notifying APRA of changes & breaches

• The Board must ensure that a sound risk management culture is established and maintained throughout the institution/group (CPS 220

• para 12(b)); and • The Board must monitor culture to meet their

requirement to certify annually that an effect risk regime is in place and has operated effectively

• Appropriately sized for nature and complexity of organisation

• Skilled resources dedicated to risk management with clearly defined roles, responsibilities & reporting lines

• Operationally independent of business lines• Appropriate remuneration structure

Governance (new in parts) Risk Function

Risk Management Framework Prevailing Culture


Tip No. 1 - Shoes

© Copper Bottom Mentoring© Copper Bottom Mentoring

What I meant to

say

What they heard/understood

Tip No.2 - The Arc of Mis-Communication

Communication Gap0


The Model Part 1

Tip No.3 - The Art of Personal Influencing

Assertion

Persuasion

Bridging

+10 0 +10

Ù X Ù X Ù X

Push Pull


The Model Part 2

Dance

Music

Lyrics



Where magic (or disaster) happens

Lyrics Music Dance

Assertion

Persuasion

Bridging

10 30 60



Whales

Goldfish

Eels

Level of influence

Against you/your argument For you/your argument

Low

High

Tip No.4 - Strategic Influencing


Level of influence


Low

High

Arthur

Jenny

Arjun

Jill

David

Steve

Liu Yang

ClaireZhang

Julia



Level of influence


Low

High

Arthur

Jenny

Arjun

Jill

David

Steve

Liu Yang

ClaireZhang

Julia



Assumptions: Recently appointed as Chair and therefore needs to demonstrate capability to make transition. Needs to create and sell ‘own agenda’. Likely to put his own committee members in place – therefore

things will change. Small wins, create momentum, no disasters within first 12 months are core objectives.

Influencing Objectives: I need to move to ‘trusted advisor’ status but critically to be seen as Company centric not AD centric. Quality of judgment, pro-activeness, and being seen to do the right thing for Company will define my and Risk’s reputation. Actions and behaviours rather than words need to

drive my thinking

Arthur Daley – Chair of Risk Committee



Influencing Approach:

• Be proactive – provide insight and analysis unprompted

• Consult as appropriate, ensure analysis supports better decision making – but be decisive, role model integrity

• Consider unintended consequences – invest time thinking in AD’s shoes. Particular focus on AD’s relationships – who is he influenced by?

• Get to know AD the person. Use bridging skills to develop an understanding of his values and beliefs

• Avoid situations that put you between AD, the Board, and the CEO. Keep personal emotion at bay, promote transparency

Arthur Daley – Chair of Risk Committee



Is this you?

‘When I was your age, things were exactly the way they are now.’


• The role of an NED is not easy, and the penalties for getting it wrong are “sobering”. Understand where they are coming from – walk in their shoes

• Assume they have maximum intelligence but minimum knowledge

• Use the Strategic Influencing Tool to work out who are the whales and who are the sharks – using your Bridging skills and Relationship Mapping

• Develop influencing strategies for the key players – beware of making assumptions with no supporting information

• Strategy is one thing but personal influencing is upfront and personal – use the Influencing Model

• Minimising the Arc of Mis-communication is essential to corporate success

• If you are going to be remembered for anything make it for sound judgment

• Make mistakes, not excuses. Transparency

To recap…


For further information please contact: Richard Gossage – [email protected]

Copyright: Copper Bottom Enterprises Ltd. All rights reserved. Copper Bottom Advisory and Copper Bottom Mentoring are trading names of Copper Bottom Enterprises Ltd.This document is protected under the copyright laws of Australia and the UK, and other countries, as an unpublished work. The document contains information that is proprietary and confidential to Copper Bottom Enterprises Ltd. It shall not be disclosed or duplicated, used in whole or in part by the recipient for any purpose other than for the purpose intended. Any other use or disclosure in whole or in part without the express written permission of Copper Bottom Enterprises Ltd is prohibited.

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