Risk Management Framework for DDO - Pt 2
by Leica Ison
Part 2 of the Risk Management Framework for DDO explores the importance of embedding end-to-end product lifecycle oversight in your executive and product teams. In our case study, we review oversight challenges faced in the financial services sector.
The areas raised in the case study put the spotlight on leadership teams to set accountability for end-to-end product lifecycles, with connection and collaboration as a virtual team.
Business must extend the scope of their product teams to assist organisations in managing emerging operational and non-financial risk.
'The criticisms EY's report levels at some of the bank's executives are numerous and disturbing. It finds some of the bank's highest-paid staff failed to devote sufficient time and resources to risk and embed the required disciplines into their roles and the divisions they oversaw'. Quoted from AFR May 23, 2020, James Frost.
In classic organisational design, the risk and product teams are usually found in separate functional silos – where risk teams conduct periodic assessments of operational risk. However, if product teams are only responsible for part of the end-to-end lifecycle, gaps begin to emerge in this approach as digital technologies bring challenges to this model.
Modern approaches to risk management rely heavily on the three lines of defence model or 3Lod. The first line is the business division, and the second is the risk management division and the third is group audit. Quoted from AFR May 23, 2020, James Frost
The classic approach of the Three Lines of Defence poses challenges to get teams out of functional silos and the difficulty in predicting non-financial risk in a product or portfolio lifecycle. To minimise these risk areas, organisations need to invest in a new approach for end-to-end product lifecycle oversight to bring together cross-functional teams, ensuring alignment across the lifecycle.
'By 2023, 35% of product management teams will have implemented digital product management'. Gartner Insights, 2019.
Skyjed's Ai-based platform adopts a new strategic playbook for Chief Product Officers with a broader outlook and provides tool for auditing and reporting product health. The Skyjed capability enables all types of products and industries to be effectively equipped to work across the organisation – including risk teams.
The role of the product manager is expanding due to the growing importance of data in decision making, an increased customer and design focus, and the evolution of software development methodologies. - McKinsey & Company High Tech/Digital May 2017
Chief Product Officers and digital product managers now have a significant role to play in product oversight and retooling businesses to align on emerging product risks. At Skyjed, we have created digital product management software that embeds and automates managing an end-to-end product lifecycle with product and risk assessment for each product and portfolios. We do this with the simplicity and cost-effectiveness of a cloud-based solution that supports product oversight for the digital world.
In this emerging and disciplined approach to lifecycle governance, the stages covered are:
- Product planning
- Developing new products or features
- Introducing new products effectively
- Developing Go-to-market strategies
- Managing lifecycle of new and existing products
- Product oversight for strong governance.
How do we do this?
Skyjed’s product governance framework helps product professionals assess and audit their product portfolios against the five domains of product health in a rapid and continuous 90-day audit cycle to enable businesses to embrace changes in customer expectations and disruption.
Click here for Part 1 of this series if you haven't read it.
The Skyjed product lifecycle management and governance platform provides organisations with a 360-degree view of their product portfolios health and risk status while facilitating collaboration, transparency and product trust in the day to day operations of the organisation.