Compliance Risk Management – Risk analysis (part 2)

Step 2. Identify causes and consequence scenarios Causes and consequences for the bow-tie diagram are normally derived from the regulations as well as through consultation with risk owners and subject matter experts. Common consequence scenarios for compliance risks (just a quick example, there is more) include: Risk area Examples of consequence scenarios Licensed activities and… Continue reading Compliance Risk Management – Risk analysis (part 2)

Torsten Röhner – Why probability is critical for meaningful financial modelling

Torsten Röhner, founder and managing director of Syconomic, demonstrates why financial models that do not account for probability are virtually meaningless. “Most innovations in financial modelling solve the wrong problem… They solve technical problems instead of overcoming flaws in the methodology,” Torsten Röhner, founder and managing director of Syconomic, told the audience at Risk Awareness… Continue reading Torsten Röhner – Why probability is critical for meaningful financial modelling

Compliance Risk Management – Risk analysis (part 1)

Wherever possible companies should apply quantitative risk analysis to measure and prioritize compliance risks. Wait what? We can do better than a compliance heatmap? Apparently :)) The following information should be collected and recorded for each identified risk: Possible consequence scenarios as described in the legislation or other regulatory requirements (usually includes fines, 3rd party… Continue reading Compliance Risk Management – Risk analysis (part 1)

Compliance Risk Management – Risk identification

Every organisation is required to comply with laws within the countries it operates in, the legal and regulatory requirements vary between different regions adding to the need to have understanding and confidence in the risk management processes in place. Organisations face considerable uncertainty when making decisions and taking actions that may have significant compliance consequences.… Continue reading Compliance Risk Management – Risk identification

Alex Sidorenko – Why businesses and decision-makers must embrace Risk Management 2

One major flaw in the risk management industry is that the commonly adhered to standards and practices are built on theories that have no basis in scientific fact. Indeed, risk managers have become bogged down in appetite statements and risk registers which have little or no bearing on improving actual decision-making. But how have things… Continue reading Alex Sidorenko – Why businesses and decision-makers must embrace Risk Management 2

The story behind RISK AWARENESS WEEK

The Challenge Alex Sidorenko has been working in risk management, a relatively small field in quantitative decision making, for 15 years. His speciality lies in the statistics, math and decision-making disciplines. Travelling to speak at summits was a major part of his role as Head of Risk at large corporations. Besides presenting his risk management… Continue reading The story behind RISK AWARENESS WEEK

Risk is in the eye of the beholder – key risk management lessons from 2020

Sam Savage always says risk is in the eye of the beholder. 2020 certainly proved it once again – while COVID-19 was an ever present risk, it affected everyone and every company differently. At the personal health and safety level, COVID-19 was and still is a serious issue with consequences ranging from mild to deadly,… Continue reading Risk is in the eye of the beholder – key risk management lessons from 2020

Twenty insights that will transform the way you think about risk management (part 2)

At Risk Awareness Week 2020, Julian Talbot, risk author and consultant, shared his top insights from over twenty years in risk management. Anxiety is your friend Talbot says: “A little anxiety is a good thing, it wouldn’t exist if there wasn’t some evolutionary edge from it.” Lesson for risk managers: “You can’t wish away anxiety… Continue reading Twenty insights that will transform the way you think about risk management (part 2)

Twenty insights that will transform the way you think about risk management (part 1)

At Risk Awareness Week 2020, Julian Talbot, risk author and consultant, shared his top insights from over twenty years in risk management. It’s never what you think Key example: “One example, is the world of high reliability organisations which is a well-studied area looking at things like nuclear aircraft carriers, power plants, and air traffic… Continue reading Twenty insights that will transform the way you think about risk management (part 1)

“Uncertainty reduction doesn’t create value…” or does it?

by Dmitry Surovtsev, Schlumberger This post is inspired by an interesting online discussion I had with Trygve Botn in the aftermath of the RAW2020 event [1]. As the original forum chat doesn’t seem to be a common meeting place for risk professionals so far, I’ve agreed with Alex Sidorenko to put this extended version of… Continue reading “Uncertainty reduction doesn’t create value…” or does it?