Frequently, risk models are created by organizations to target a narrow set of decisions. However, there is an opportunity to use these same models to power other decisions around the enterprise.
We will walk though how Highmark Health created a unique capability to measure various risks (amount of risk taken against net assets), that can be leveraged as a power plant for other decisions in the enterprise.
Illustrative examples will include:
• How many people will we need for our call centers?
• Should we move forward with a new business venture?
We believe this is the future of risk management, creating a library of risk models that can be used by anyone in the organization with centralized quality control.
I am a Risk “Mad Scientist” who used to view the world through the lens of an auditor. Through exposure to quantitative experts in fields like actuarial science & decision science, I have come to realize that I was trying to use risk governance tools as decisions tools. Not only does this not help in decision-making, it can lead organizations to make poor decisions. I have now devoted my career to relearning how decisions are made and to applying scientific methods to support leaders to make quality decisions in the face of uncertainty.