While I written this post about compliance risks in the past, I later applied exactly the same math and logic to any non financial risk, including intellectual property, legal, environmental, ESG and most other risks you can think of. Follow this step by step guide to quantify most non financial risks or if you want… Continue reading You can quantify any risk on the planet, just follow these steps
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ESG is the worst thing to happen to risk management… after GRC
Climate change is a huge issue, environmental pollution is a huge issue, social inequality and everything else typically bundled under the ESG umbrella are important issues totally deserving the management attention. This article is about something else entirely, so keep your system 1 thinking in check and carry on reading. This article is about the… Continue reading ESG is the worst thing to happen to risk management… after GRC
5 red flags 🚩when selecting an insurance broker
Couple of years ago I was given the responsibility for corporate, non-life insurance across a $10B group of companies. I welcomed the opportunity to combine risk-based quantitative decision making with insurance. Did it work? You be the judge, a year later the company improved the quality of coverage while reducing the cost of insurance by… Continue reading 5 red flags 🚩when selecting an insurance broker
Reputational risk is not a risk
Despite the clickbait title, the messages are in the article are important to the risk profession and are purely practical. First few caveats, corporate reputation is important, even a perception of wrongdoings can affect funding, sales and cost of doing business. Importance of reputations for both profits and non-profits is not up for a debate.… Continue reading Reputational risk is not a risk
5 red flags 🚩 when doing a risk assessment
Risk assessments are probably the most common activities within the risk management profession and there is a very fine line between being a total waste of time and a useful risk management approach. So what are the most common pitfalls, how to avoid them and how to turn risk assessments into a useful decision making… Continue reading 5 red flags 🚩 when doing a risk assessment
What is a risk? It’s not what you think it is
If there is one thing I learned as a CRO, it is crucial to understand the nature of each and every risk we have to work with. I will no doubt write a separate article about the mistake of aggregating various risks into a risk register or attempting to use the same methodology to quantify… Continue reading What is a risk? It’s not what you think it is
Why Board Audit Committee is the worst place for risk management and having a separate Board Risk Committee is even worse
Over the last 10 years it became almost dogmatic that risk management effectiveness has to be disclosed at the Board level. It seems to be equally accepted that full Board is responsible for risk management oversight, who, however can and often do, delegate this oversight responsibility to the Audit Committee. This is in fact so… Continue reading Why Board Audit Committee is the worst place for risk management and having a separate Board Risk Committee is even worse
ISO and COSO haven’t got a clue. You can and should quantify compliance risks
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. The management… Continue reading ISO and COSO haven’t got a clue. You can and should quantify compliance risks
Your kids are not taught risk management at school, you have to do it
I wanted to start with some typical math problems in school: Two cars started from the same point, at 5 am, travelling in opposite directions at 40 and 50 mph respectively. At what time will they be 450 miles apart? At 9 am a car (A) began a journey from a point, travelling at 40 mph. At… Continue reading Your kids are not taught risk management at school, you have to do it
Why risk community rejects science, logic and common sense
First, I wanted to share an extract from the book I am reading at the moment Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life The chapter is called “I Know It Works in Practice, but Does It Work in Theory? On John Harrison, Semmelweis and the Electronic Cigarette”… Continue reading Why risk community rejects science, logic and common sense
