1. Ideas for those who want to make a difference Richard Gossage
Of Whales and Sharks
Ideas for those who want to make a difference
Richard Gossage

2. If the risk messages are understood by the board they will do a better job of taking & managing risks
Copper Bottom ©

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

4. ‘Eagles may soar …’
© Copper Bottom Mentoring

5. get stuck in jet engines’
‘…but weasels don’t
get stuck in jet engines’
- Ricky Gervais, The Office
© Copper Bottom Mentoring

6. Who wants to be an NED? Governance (new in parts) Risk Function
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
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
Risk Management Framework
Prevailing 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
Australian Regulatory Change - Jan 1st, 2015

7. Tip No. 1 - Shoes

8. Tip No.2 - The Arc of Mis-Communication
What I meant to say
Communication
Gap
What they heard/understood
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9. Tip No.3 - The Art of Personal Influencing
The Model Part 1
Assertion
Bridging
Persuasion ÙX ÙX ÙX
+10
Push
Pull
+10

10. Tip No.3 - The Art of Personal Influencing
The Model Part 2
Lyrics
Music
Dance

11. Tip No.3 - The Art of Personal Influencing
Where magic (or disaster) happens
Assertion
Bridging
Persuasion 10 30 60
Lyrics Music Dance

12. Tip No.4 - Strategic Influencing
High
Whales
Level of influence
Eels
Goldfish
Low
Against you/your argument
For you/your argument

13. Tip No.4 - Strategic Influencing
High
Arthur
Jenny
Claire
Zhang
Arjun
Level of influence
Julia
Liu Yang
David
Jill
Steve
Low
Against you/your argument
For you/your argument

14. Tip No.4 - Strategic Influencing
High
Arthur
Jenny
Claire
Zhang
Arjun
Level of influence
Julia
Liu Yang
David
Jill
Steve
Low
Against you/your argument
For you/your argument

15. Tip No.4 - Strategic Influencing
Arthur Daley – Chair of Risk Committee
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

16. Tip No.4 - Strategic Influencing
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

17. ‘When I was your age, things were exactly the way they are now.’
Is this you?
‘When I was your age, things were exactly the way they are now.’

18. To recap…
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

19. Copper Bottom Mentoring
For further information please contact: Richard Gossage –
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