Spark Newsletter – January 2023
This month’s Spark newsletter examines:
- Digitalization trends ORM and PSM professionals need to know for 2023
- The proposed climate-related risk management framework for large banking organizations from the U.S. Fed
- PCAF and its impact on the financial industry
- Hazardous area management and its implications for business
- The growing need for a digital approach to ESG reporting
3 Key Digitalization Trends ORM and PSM Professionals Need to Know for 2023
If 2022 taught us anything, it’s that the drumbeat of change never stops. For operational risk management (ORM) and process safety management (PSM) professionals, one of the biggest changes to contend with is the acceleration toward greater digitalization within their organizations. As the workforce gets younger and technology continues to advance, digitalizing PSM and ORM will become more of a focus in 2023 and beyond.
Read about three digitalization trends to keep on your radar this year.
US Fed Proposes Climate-Related Risk Management Framework for Large Banking Organizations
Climate change introduces many unknowns for businesses, but getting caught off guard can be costly. With climate patterns changing and weather events becoming more severe, companies need to take steps to protect their assets and their plans. These steps should include robust risk assessments that help companies understand the climate-related risks they face and strategies that enable them to monitor and manage these risks.
This applies to financial institutions as well, and to that end, the U.S. Federal Reserve Board recently published draft Principles for Climate-Related Financial Risk Management for Large Financial Institutions. The draft principles are now in a public comment period that ends on February 6, 2023.
Read more about the proposed climate-related risk management framework.
PCAF and Its Impact on the Financial Industry: How Financial Leaders Can Join the Fight Against Climate Change
In the continuing effort to meet greenhouse gas (GHG) reduction goals, the familiar adage about “following the money” has proven to be profoundly true. With more than $3.8 trillion USD invested in the fossil fuel sector in total, the financial industry has a major role to play in bringing about the changes needed to meet the Paris Climate Agreement’s 2050 / net-zero carbon goals.
This is the simple (and stark) reason that drove the formation of the Partnership for Carbon Accounting Financials (PCAF) and the development of the Global GHG Accounting and Reporting Standard for the Financial Industry.
Read more about PCAF and its impact on the financial industry.
Andy’s Almanac on Accidents, Part Nine: Managing Hazardous Areas Successfully
In the latest episode of Andy’s Almanac on Accidents, Andy Bartlett, Sphera’s Solution Consultant for Operational Risk Management, discusses hazardous area management and what can be achieved and what can be avoided by simply reviewing lessons from the past.
As part of the discussion, Andy notes, “Organizational learning is a key aspect of health and safety management. If reporting and follow up systems don’t fit the purpose, for example, if a blame culture acts as a disincentive to report near misses, then valuable knowledge will be lost.”
Listen to the full podcast episode now.
The Growing Need for a Digital Approach to ESG Reporting
The need for a digital approach to ESG reporting is growing rapidly. What was previously viewed as a tiresome IT department topic is quickly becoming a top priority for ESG managers and the companies they work for. Many organizations are now realizing that digital solutions are vital to executing well-rounded data management processes, complying with regulations and successfully implementing ESG strategies.
Read more about the growing need for digital ESG solutions.