Re-branding Risk Management and Audit Functions

There is an old joke on power of branding. When a man goes to a woman and says – “I am great in bed, how about it?”, it is sales. When an attractive woman goes over to a guy at a party and says – “Hi, I hear you’re great in bed, how about it?”, it is branding.  Seriously speaking, how many times have the business teams come over to the risk management or audit department and said – “You are great at this, we need your help and advice”. If the business teams aren’t approaching, then we have poor brand image. Our customers are in two minds whether they should involve us or not. Quite often the business teams think they are better off without us. So shouldn’t we be delving deeper to find out that why in the competition between various departments in an organization, we generally are at the bottom on the popularity chart?

1.     Auditors are Watchdogs

Seriously, why do we use this term? It negates the very premise of being of service to others. Think of it for a second. We say, men are dogs, women are bitches, and auditors are watchdogs. Does it connect to negative or positive emotions?

With it we wish to sell the image of trusted partners, advisers and mentors. When we use the word watchdog, do we think –as trustworthy as a dog?

Have you ever felt the urge to pet a strange German Shepard or a Doberman? We see a couple of them coming towards us, and the bravest of us feel a tinge of fear and anxiety. Why do we expect any person interacting with an auditor to feel any different then?  Doesn’t the term watchdog, makes auditing sound like a blood sport? Why get stuck with an age old expression?

2.     The Coolness Quotient

We associate with brands because of their coolness quotient. It feels good to be part of the tribe, now whether it is Facebook site, Intel machines, Apple iPhone or Harvard degree. We desire it because it makes us feel or look good. When does audit or risk management makes the customer feel or look good?

I came across David Brier (@davidbrier), a branding expert on Twitter. In his short book titled “The Lucky Brand Book”, I was stunned by the last point. It said – give a reason to celebrate the brand.

I questioned him – how does one celebrate risk management? He gave me two answers –

a)     “Choreographed spontaneity” – all the fun and with a safety net

b)     All the gain without the pain

Both these answers send out positive messages. It definitely shatters the mind-set that risk management applies to negative aspects of business. Why not give it a try?

3.     The Independence Clause

We profess to maintain independence, and to do so we state quite a few things are management responsibility. At one point we express a desire to sit on the board table; at another we disassociate ourselves from management. I understand the technicalities of requirement to maintain independence. The question is – are we using it to escape responsibility?

As part of an internal audit role we undertake to issue an audit report. In risk management we either assist or conduct a risk assessment. As risk managers we provide the second line of defense and as auditors the third line of defense.

Though we desire a more active role, we don’t wish to match the responsibility with it. For instance, we submit a report with recommendations, and leave the business teams to implement the solutions, as it not part of our job. Doesn’t that appear like sailing a person in  middle of a deep-sea and leaving them there, on their own? As giving a return ride back to the shore isn’t part of the deal.  Is it going to generate trust and respect to build healthy relationships? Next time round, are the business teams going to welcome us back?

Closing Thoughts

I definitely don’t have the answers to this one. Though it is clear, we need to re-brand. Maintaining the status quo isn’t helping us. At the logical level we are doing our job. At the sub-conscious level the business teams receive numerous negative messages, which dissuade them from emotionally connecting with the functions and its members. Risk managers and auditors need to figure out how to brand themselves externally and internally.

While you do so, listen to one of the everlasting brands – Elvis singing Suspicious Mind

References:

The Lucky Brand Book by David Brier