In 2018 I attempted to coin the distinction between “Risk Management 1” – cosmetic, governance-driven risk management, and “Risk Management 2” – value-adding risk management that drives better decision-making https://riskacademy.blog/rm1-vs-rm2-which-side-will-you-choose/ I have been following walking the talk, in both my consulting practice, personal life and in the corporate employment, ever since. In 2021 the company… Continue reading Risk management 2 is both a control and decision making tool
Category: Risk management
RAW2021 agenda is now online, register before the early bird ends
RISK AWARENESS WEEK is the biggest online platform to learn about risk management and decision making. Amazing lineup of international speakers share practical case studies on integrating risk management into climate and environmental decision making, planning, project management and risk-adjusted performance management. No RM1 workshops, no sales pitches from brokers or insurance companies, just practical… Continue reading RAW2021 agenda is now online, register before the early bird ends
RAW2021 – Future trends in Risk Management 2.0
Alex Sidorenko is an expert with over 15 years of private equity, sovereign wealth fund risk management experience across Australia, Russia, Poland and Kazakhstan. In 2014 Alex was named the Risk Manager of the Year by the Russian Risk Management Association. Alex will introduce the speakers, explain the structure of the event and share some… Continue reading RAW2021 – Future trends in Risk Management 2.0
RISK AWARENESS WEEK 2021 IS BACK! EARLY BIRD SALE ENDS IN 11 DAYS. DON’T MISS THE 80% OFF ALL ACCESS TICKETS
Our theme this year is better and greener decision making through risk management with specific focus on better planning, performance management and governance through risk management and decision science. Check out amazing speakers who already joined the conference https://2021.riskawarenessweek.com/ The objective this year is to bring risk management to non-risk professionals who would benefit from its… Continue reading RISK AWARENESS WEEK 2021 IS BACK! EARLY BIRD SALE ENDS IN 11 DAYS. DON’T MISS THE 80% OFF ALL ACCESS TICKETS
Recommended pre-reading for the RAW conference
RAW2021 is coming soon and I wanted to share something valuable with you. During the conference you will hear many of the speakers talk about Risk Management 2 (RM2), decision science, decision quality, probability theory and other terms unfamiliar to many risk practitioners or business decision makers. These 3 things will help you to have… Continue reading Recommended pre-reading for the RAW conference
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
Compliance Risk Management – Risk mitigation and reporting
Risk mitigation and trade-off The treatment of compliance risks refers to the corresponding strategies implemented by an organization to deal with its risks. A risk treatment plan should consider a range of treatment options, which may include legal remedies as well as financial, operational and reputational remedies for each prioritized risk. The following factors should… Continue reading Compliance Risk Management – Risk mitigation and reporting
Compliance Risk Management – Risk analysis (part 5)
Step 5. Measure the effect of risks on decisions In order to account for the uncertainty both in the consequences of each scenario and its weight, consequence distributions are multiplied by weight distributions using the Monte-Carlo simulation method. Normally 10000 simulation runs should be sufficient for most compliance risks, however more simulation runs may be… Continue reading Compliance Risk Management – Risk analysis (part 5)
Compliance Risk Management – Risk analysis (part 4)
Step 4. Allocate weights to each scenario In order to determine the weight allocated to each consequence scenario of events triggered by compliance risk, historical data, modelling, as well as expert opinions, can all be used, individually or in combination. Weight of each scenario can involve the following factors: the range of laws, along with… Continue reading Compliance Risk Management – Risk analysis (part 4)
