Page 9 - CIMA May 18 - MCS Day 2 Suggested Solutions

CIMA MAY 2018 – MANAGEMENT CASE STUDY

MENTA could instigate internal communication for circulation, e.g. newsletters or blog posts
where issues such as recent technological development/changes are highlighted which could
potentially have an effect on risk. Similarly recent events where the effect of risk may not have
been considered at the earliest opportunity should form part of this communication. Highlighting
these events may encourage other departments and the Board to take the new departments
findings seriously.

In that context, communication will need to be efficient and effective to assist in this respect. It
will need to be a “two‐way” exercise, requiring the ability to deliver clear messages to both
internal and external stakeholders with clarity and brevity. Messages should be appropriately
structured as this will help the recipients to understand and retain the information.

Communication of any new department’s findings is likely to be a regular if not continuous flow of
information. It is imperative given the nature of the new department that they should ask for and
listen to feedback. Two way communication of this sort will help prevent misunderstandings and
build good working relationships. The new department should explain clearly why any changes it
recommends are important to ensure that the importance of their communications is recognised.

Risks identified and potential savings made as a result of successfully implemented mitigation
practices could be used as performance indicators and would help to demonstrate the
department’s importance. The new department should emphasise that non‐acceptance of
recommendations made will potentially result in loss of revenue, profitability and perhaps even
worse – brand and customer loyalty. Raising the importance in this way would support the
introduction of the new department and embed its role for the longer term success of MENTA.

Change management issues associated with the creation of this new department are likely to
focus on people issues with new leaders created, skills and capabilities developed and perhaps
even jobs changed.

Change is unsettling and the leadership of the main and regional boards is important. In order to
motivate the board to make full use of the department’s output it is important that the CEO’s
demonstrate this support.

It is recommended that a business case for the new department be made, with specific examples
of risks that have occurred in the industry identified to support this aim.

Financial Manager

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