Practical ideas: Conduct training for “risk-champions”

Provide additional risk management training to the in-house risk management team and business units responsible for internal control, audit, finance, strategy and others. Risk managers may conduct it personally or outsource to third party providers. In-depth risk management training should include (this example is based on the actual risk management training provided by Institute for Strategic Risk Analysis and RISK-ACADEMY to some of the largest non-financial companies in Russia):

RISK MANAGEMENT FOUNDATIONS

  • Definition of risk
  • History of risk management
  • International and national risk management standards
  • Introduction to finance, project management and process management
  • Introduction to statistics
  • Insurance basics

RISK MANAGEMENT IN DECISION MAKING

  • Identification of risks associated with decision making or goals/KPIs achievement
  • Risk analysis in decision making (sensitivity analysis, scenario analysis, Monte-Carlo simulations, decision trees, scoring models)
  • Risk mitigation and risk-based decision making
  • Disclosure, reporting, monitoring and review

PSYCHOLOGY AND RISK MANAGEMENT CULTURE

  • Risk psychology and cognitive biases in decision making
  • Risk management culture
  • Principles of risk management ethics

INTEGRATING RISK MANAGEMENT INTO THE BUSINESS

  • Understanding the organisational appetite for risk
  • A roadmap for risk management integration:
    • Developing new and updating existing policies and procedures
    • Integration into decision making, planning, budgeting, purchasing, auditing etc.
    • Risk management roles and responsibilities, risk management KPIs
    • Integrating risk information into management reporting
    • Resources required for the implementation of risk management
  • Auditing risk management effectiveness
  • Risk management continuous improvement
  • Risk management software

 

HERE IS A QUICK CHECKLIST TO TURN THIS SECTION INTO ACTIONS

Identify key stakeholders within the organisation who may benefit from advanced risk management training

Provide in-depth risk management training for risk champions that covers the key principles of ISO31000:2018, decision quality and cognitive biases, risk quantification, risk culture and integration of risk analysis into decision making and core processes

 

USEFUL VIDEOS

  https://www.youtube.com/watch?v=DHx1Al0ffo0

https://www.youtube.com/watch?v=68bkd51OHn8

https://www.youtube.com/watch?v=k2dVAdKLzYE

  https://www.youtube.com/watch?v=vLvz3SE8AI0

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