Risk management is ultimately about creating a culture that would facilitate risk discussion when performing business activities or making any strategic, investment or project decision.
In this free book, Alex Sidorenko and Elena Demidenko talk about practical steps risk managers can take to integrate risk management into decision making and core business processes. Based on our research and the interviews, we have summarised fifteen practical ideas on how to improve the integration of risk management into the daily life of the organisation. These were grouped into three high-level objectives: drive risk culture, help integrate risk management into business and become a trusted advisor.
The three key takeaways from the book include:
- Risk management is not just about tools and techniques; it is about changing the corporate culture and the mindset of management and employees. This change cannot happen overnight, risk managers need to start small by embedding elements of risk analysis into various decision-making processes, expanding the scope of risk management over time.
- It is vital to break the status quo where risk management is seen as a separate and independent activity. Instead, risk managers should integrate risk management into all core business activities. This can be achieved by integrating risk analysis into decision-making processes, assisting management in evaluating projects and strategic initiatives with the use of risk analysis tools, integrating risk management into strategic planning, budgeting and performance management, incorporating responsibilities in job descriptions, providing management training and etc.
- Risk managers should strive to become advisors to senior management and the Board. Advisers that are trusted and whose recommendations are listened to. To achieve this, risk managers may need to break away from traditional models like “3 lines of defense” and instead choose to actively participate in the decision making, take ownership of some risks and provide an independent assessment of risks associated with important business decisions, maybe even veto some high-risk activities.
This document is designed to be a practical implementation guide. Each section is accompanied by checklists, video references, useful links and templates.
This guide isn’t about “classical” risk management with its useless risk maps, risk registers, risk owners or risk mitigation plans. This guide is about implementing the most current risk analysis research into the business processes, decision making and the overall culture of the organization.
READ ONLINE FREE OR DOWNLOAD: https://www.researchgate.net/publication/323254437_GUIDE_TO_EFFECTIVE_RISK_MANAGEMENT_30
Buy audiobook: https://riskacademy.blog/product/audio-risk-management-book/
Buy the book in a course with additional commentary and masterclasses: https://www.udemy.com/course/1687492/
Latest online course, the most comprehensive program: https://courses.dcroi.org/courses/alex-sidorenko?ref=bda26d
Check out other decision making books
RISK-ACADEMY offers online courses
Informed Risk Taking
Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!
ISO31000 Integrating Risk Management
Alex Sidorenko, known for his risk management blog http://www.riskacademy.blog, has created a 25-step program to integrate risk management into decision making, core business processes and the overall culture of the organization.
Advanced Risk Governance
This course gives guidance, motivation, critical information, and practical case studies to move beyond traditional risk governance, helping ensure risk management is not a stand-alone process but a change driver for business.
Hi, the whole thing is going well here and ofcourse every one is sharing facts, that’s actually
fine, keep up writing.
The three key takeaways from the book are very eye-opening in our opinion. They encompass what sounds like a great mindset for all professionals in the industry to have.
Thank you
This book is a complete guide and really impressive work. Thanks
Such a very nice article and strong i agree with that about risk management its not a too but change also business facilities.Operational Risk Management System in Bahrain
Hi Buddy
Its very glad to read the risk management blogs and the way you explore risk assessment & hazard management was very unique information . Please share the advanced techniques on risk management bogs . Great work !