I wanted to introduce to you our new online course developed by DCRO Institute and Risk Academy – Advanced Risk Governance.
The course is built upon 2 fundamental principles: verifiable science and validated through practical application by the authors. Whenever we implement a technique, methodology or approach it has to be based on either decision science, probability theory, neuroscience, behavioral economics, corporate finance or other relevant and well researched fields of study. And more importantly, we only share theories have been validated, back tested and replicated by numerous organizations.
In 2021 both FERMA in Europe and RIMS in US recognized this approach as best-in-class but more importantly, it allowed the company where one of the authors worked to save $13M on insurance premiums while improving the quality of coverage and increasing limits as well as reduce credit, performance and market risks and support risk-based decision making.
We hope ideas and tools presented in this course will provide you with practical ammunition (tools and ideas) that will have an immediate and significant effect on the quality of Board decision making. We encourage you to share your implementation success stories with the professional risk community at the next global Risk Awareness Week conference.
Overall theme for the course is advanced risk oversight.
Advanced risk oversight is a role a board member may choose once the traditional risk management elements have been implemented and the board member is prepared/curious/interested in taking a proactive role in driving deeper change to the way companies plan, budget, make decisions and measure performance with risks in mind.
Once the risk appetite statement is in place, risk policy approved, risk reports are prepared regularly, the board members may ask “so what”. Did that version of risk management change the way management plans and executes decisions? If you as the board member are dissatisfied with the effect risk management is having on the business bottom line and executive performance, then this course is for you.
Our goal is to look beyond the “ERM” view of risk management and share practical case studies how quantitative risk management changes how management makes decisions, procures, plans, forecasts, transfers risk and measures risk-adjusted performance.
The course consists of five modules:
- Module 1 covers introduction, theme, structure and course objectives.
- Module 2 showcases some of the problems with modern risk management, business and project planning and finance and explains why many common methodologies ignore and hide risks from decision makers making risk oversight impossible.
- Module 3 describes what good risk-based decision making may look like and explains the role Board members play in integrating risk management practices into planning, decision making and performance management.
- Module 4 provides specific case studies on risk management implementation and the value and savings companies were able to generate through better quantitative risk analysis.
- Module 5 attempts to bring it all together and cover the cultural side of risk management to make the changes stick.
The course has the following objectives:
- Provide you with ammunition to initiate the move to advanced risk management and find support from shareholders and top management
- Improve the quality of your decision making and corporate planning and performance management through better risk analysis
- Protect and reduce your exposure to non-transparent decision making
- Provide practical case studies and additional resources to strengthen your oversight and learn from successful implementations