Operational Risk Management (ORM) is an essential component of any serious business. These are the internal risks you take when you add people, processes and systems together and then operate in a specific industry or geography. Innovation within the ranks of a new breed of business accelerator, has the opportunity to include "Operational Risk Strategy Execution" as a vital mechanism for the growth of the new born company.
Do you know about a start-up company that is building a product or solution to address one of these Operational Risk categories? The following lists the official Basel II defined seven event types with some examples for each category:
Do you know about a start-up company that is building a product or solution to address one of these Operational Risk categories? The following lists the official Basel II defined seven event types with some examples for each category:
The start-up phenomenon has taken many metro areas around the United States by surprise. The typical centers of innovation in Seattle, San Francisco, Los Angeles, Austin, Boston and Washington, DC are now being joined by newcomers such as Cincinnati:
- Internal Fraud - misappropriation of assets, tax evasion, intentional mismarking of positions, bribery
- External Fraud - theft of information, hacking damage, third-party theft and forgery
- Employment Practices and Workplace Safety - discrimination, workers compensation, employee health and safety
- Clients, Products, and Business Practice - market manipulation, antitrust, improper trade, product defects, fiduciary breaches, account churning
- Damage to Physical Assets - natural disasters, terrorism, vandalism
- Business Disruption and Systems Failures - utility disruptions, software failures, hardware failures
- Execution, Delivery, and Process Management - data entry errors, accounting errors, failed mandatory reporting, negligent loss of client assets
The entrepreneurial world is not an easy one to take on, but for those brave enough to do so, Cintrifuse is here to help. Located in the heart of downtown Cincinnati, Ohio, Cintrifuse acts as a connecter and supporter to create a global destination for entrepreneurial success.
Cintrifuse connects the region’s high-potential, venture-backable startups to advice, talent, funding, and customers. With over 30 ecosystem partners, 30+ participating local corporations, 75+ mentors and advisors, Cintrifuse leverages the power of its network to serve over 100 startup members and improve their chances of success.
To amplify the efforts and extend the reach of the entrepreneurial community, Cintrifuse operates a $56MM Fund of Funds, which invests in early-stage venture capital funds both regionally and nationally. The Fund of Funds provides an avenue for corporations and venture capitalists alike to gain further insights into and engagement with the Cincinnati startup community.
Cintrifuse’s efforts are made possible through support from some of Cincinnati’s most prominent companies.
As the focus on innovation continues and NewCo's are being formed across the country, these new entrepreneurs need a foundation in truly understanding "Operational Risk Management". Why?To connect more than 100 startups with venture capital firms, corporations and service providers, Cintrifuse uses a proven membership model. Entrepreneurs gain access to like-minded, driven and engaged individuals, venture capitalists, business leaders and services providers are introduced to startups on the rise. Grow your business with Cintrifuse by signing up for membership today.
If these new entrepreneurs are better able to understand the core reasons why a business must operate within a universe of Operational Risks, then their innovation may adapt. The ideas they have for better managing cyber security, detecting the insider threat or automating the continuity of operations planning may change.
Building a new company with an innovative new product also means understanding the problem sets that a much larger enterprise is encountering on a daily basis. Innovators today sometimes lose sight of the operational risks that can be addressed by their products, as they are installed and implemented into the larger enterprise. The value proposition that addresses the decrease in loss events, will soon get the attention of senior management.
What can a business accelerator like "Cintrifuse" do to make sure that the 100+ new start-ups better understand Operational Risk Management? Perhaps even more importantly, how can their hot new NewCo product fit into the ORM matrix for addressing Enterprise Risk at a Fortune 500 company?
To answer this, just look more deeply at the 75+ mentors and advisors that Cintrifuse has at their disposal. Has Cintrifuse developed a diagnostic tool to better understand the subject matter expertise of each of those mentors?
- First, create an inventory of the skill sets and knowledge of these mentors and develop a database for the start-up entrepreneurs, then they can query who is the best mentor for a specific subject or business problem they are encountering.
- Second, the mentors themselves would need an orientation on how to assist the start-ups in seeing the nexus with operational risk in their own business model.
- Third, the mentors would demonstrate how the innovations that the enterprise requires have a nexus with the start-ups products being developed for the mass market.
Remember, ORM is the oversight of operational risk, including the risk of loss resulting from inadequate or failed internal processes and systems; human factors; or external events.When you scan the companies being accepted and graduated from all of the incubators and accelerators across the globe, many will have a product solution that impacts some facet of Operational Risk Management. The mission now is to make sure that those new entrepreneurs discover how their inventions and patents may address real-world scenarios. Just look at the current cohort companies at the MACH37 Accelerator in Herndon, Va as one example:
iAspire
Eric Whittleton, Cofounder and CEO
Arash Nejadian, Cofounder and CTO
iAspire is currently addressing the significant pent up demand for fully implemented email encryption in large enterprises by enabling end-to-end encryption that also addresses the need for real-time and in-volume secure email access for forensics, e-Discovery and compliance requirements. Aspire develops standards-based digital key management products that serve as material enablers of the “Trusted Web”. Future products will include additional store and forward applications such as a cloud-based Secure Drop-box as well as mobility solutions.
Eric Whittleton, Cofounder and CEO
Arash Nejadian, Cofounder and CTO
iAspire is currently addressing the significant pent up demand for fully implemented email encryption in large enterprises by enabling end-to-end encryption that also addresses the need for real-time and in-volume secure email access for forensics, e-Discovery and compliance requirements. Aspire develops standards-based digital key management products that serve as material enablers of the “Trusted Web”. Future products will include additional store and forward applications such as a cloud-based Secure Drop-box as well as mobility solutions.
Virgil Security
Michael W. Wellman Cofounder and CEO
Dmitry Dain, Cofounder and CTO
Virgil Security provides easy-to-deploy and easy-to-use cryptographic software and services for use by developers and end-users. Virgil Security’s encryption libraries and services, along with an accompanying public key management infrastructure, ease the pain of developing, deploying, and using strong cryptography. Virgil Security enables a new generation of enhanced privacy and security for applications, cloud services, and the Internet of Things.
Michael W. Wellman Cofounder and CEO
Dmitry Dain, Cofounder and CTO
Virgil Security provides easy-to-deploy and easy-to-use cryptographic software and services for use by developers and end-users. Virgil Security’s encryption libraries and services, along with an accompanying public key management infrastructure, ease the pain of developing, deploying, and using strong cryptography. Virgil Security enables a new generation of enhanced privacy and security for applications, cloud services, and the Internet of Things.
FireDrillMe
Marcus Carey, Founder
FireDrillMe provides a SaaS platform that orchestrates cybersecurity “fire drills” on production networks by imitating attackers. FireDrillMe helps organizations train personnel, evaluate products, and refine procedures for incident response.
Marcus Carey, Founder
FireDrillMe provides a SaaS platform that orchestrates cybersecurity “fire drills” on production networks by imitating attackers. FireDrillMe helps organizations train personnel, evaluate products, and refine procedures for incident response.
Syncurity Networks
JP Bourget, Cofounder and CEO
Ray Davidson PhD, CoFounder
Mike Volo, CoFounder
Syncurity Networks develops software for Information Security Process Management and Automation focused on Incident Response (IR) incorporating standard IR processes, automated artifact collection, and standardized report generation. Syncurity helps mid-size businesses respond to incidents faster, document lessons learned, and collect metrics for continuous improvement.
JP Bourget, Cofounder and CEO
Ray Davidson PhD, CoFounder
Mike Volo, CoFounder
Syncurity Networks develops software for Information Security Process Management and Automation focused on Incident Response (IR) incorporating standard IR processes, automated artifact collection, and standardized report generation. Syncurity helps mid-size businesses respond to incidents faster, document lessons learned, and collect metrics for continuous improvement.
SecureDB
Karthik Bhat, Founder and CEO
SecureDB is an encrypted cloud database for storing sensitive customer information such as authentication credentials, PII, PHI and credit card numbers. SecureDB’s cloud based encrypted database and associated APIs will allow enterprises to secure their customer data by providing strong cryptographic protection against unauthorized access.
Karthik Bhat, Founder and CEO
SecureDB is an encrypted cloud database for storing sensitive customer information such as authentication credentials, PII, PHI and credit card numbers. SecureDB’s cloud based encrypted database and associated APIs will allow enterprises to secure their customer data by providing strong cryptographic protection against unauthorized access.
BiJoTi
Josh Marpet, Cofounder and CEO
Billy Boatright, Cofounder and CMO
Tim Krabec, Cofounder and CTO
Ben Huey, Cofounder and CRO
Compliance requirements are coming downhill to smaller companies, and the bad guys are going after data within companies of all sizes. BiJoTi's turnkey appliance packages the advanced compliance and security benefits that large enterprises enjoy from a dedicated security organization, but at a price that works for small and mid-market businesses.
Josh Marpet, Cofounder and CEO
Billy Boatright, Cofounder and CMO
Tim Krabec, Cofounder and CTO
Ben Huey, Cofounder and CRO
Compliance requirements are coming downhill to smaller companies, and the bad guys are going after data within companies of all sizes. BiJoTi's turnkey appliance packages the advanced compliance and security benefits that large enterprises enjoy from a dedicated security organization, but at a price that works for small and mid-market businesses.
Cyph
Ryan Lester, Cofounder and CEO
Josh Boehm, Cofounder and COO
Cyph is a secure messaging app for Facebook users who aren't security experts, but demand a simple way to chat privately with their friends.
Ryan Lester, Cofounder and CEO
Josh Boehm, Cofounder and COO
Cyph is a secure messaging app for Facebook users who aren't security experts, but demand a simple way to chat privately with their friends.
As Operational Risk Management is incorporated into the core capabilities of each new entrepreneurs business plan it will benefit their own launch and better serve their intended customers.
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