Warning! If you are using Palisade PrecisionTree together with @Risk using default settings the results are most likely inaccurate and missleading. Konstantin Dozhdikov discovered that if you leave the default settings in PrecisionTree, then use it in conjunction with @Risk, the results will be incorrect and unrealistic. I have tested this using different version of Palisade… Continue reading Warning when using Palisade PrecisionTree with @Risk
Risk Management Could Be a Powerful Tool, But it Just isn’t (part 2)
In the second of a four-part series, Alex Sidorenko, founder and CEO of Risk-Academy, explains how the key to managing corporate risks is often through dealing with the individual risks of decision-makers first. If there is one thing I learned in my previous role as Head of Risk at a multibillion-dollar sovereign investment fund, risk… Continue reading Risk Management Could Be a Powerful Tool, But it Just isn’t (part 2)
Risk Management Could Be a Powerful Tool, But it Just isn’t
Alex Sidorenko shares four valuable lessons about integrating risk management principles and methodologies into the day-to-day decision making. He shares some practical suggestions on how to overcome cognitive biases when managing risks and make risk-based thinking part of the overall corporate culture of the organisation. If there is one thing I learned in my previous… Continue reading Risk Management Could Be a Powerful Tool, But it Just isn’t
Are risk managers too scared to take risks?
Many risk managers are reluctant to have a conversation with executives about the need to better integrate into decision making and the need to talk and think about risks systematically every day. Changing the methodology, reporting format and tools? Forget about it. Even just talking and asking for a great role in decision making gives them… Continue reading Are risk managers too scared to take risks?
3 fatal mistakes corporate risk managers make (part 2)
A while back I wrote an article about 3 fatal mistakes risk consultants make https://riskacademy.blog/2017/01/14/3-fatal-mistakes-most-risk-consultants-make. It made quite an impact and was republished in Australia, Canada, Singapore and Europe with dozens of thousands of views. I feel it’s only fair to write a follow up article about the 3 more mistakes that risk managers themselves… Continue reading 3 fatal mistakes corporate risk managers make (part 2)
3 fatal mistakes corporate risk managers still make (part 1)
A while back I wrote an article about 3 fatal mistakes risk consultants make https://riskacademy.blog/2017/01/14/3-fatal-mistakes-most-risk-consultants-make. It made quite an impact and was republished in Australia, Canada, Singapore and Europe with dozens of thousands of views. I feel it’s only fair to write a follow up article about the 3 more mistakes that risk managers themselves make.… Continue reading 3 fatal mistakes corporate risk managers still make (part 1)
allthingsrisk ep. 53: Alex Sidorenko – Making Great Decisions “With Risks in Mind”
When Ben Cattaneo started the All Things Risk podcast, he very deliberately stayed away from discussing the risk management profession (which is also my day-to-day profession). This is because he wanted the show to make risk and uncertainty concepts available to everyone. He didn’t want to make a podcast by risk professionals, for risk professionals.… Continue reading allthingsrisk ep. 53: Alex Sidorenko – Making Great Decisions “With Risks in Mind”
Full feedback on COSO ERM draft
Summary of comments STRUCTURED AND LOGICAL – I believe the content of any document, let alone an international guideline document, should be logically structured, should follow the MECE principle, shouldn’t have any unnecessary repetition or duplication. This was certainly not the case with the current COSO:ERM draft. Note to the authors. While the high level structure Applying the… Continue reading Full feedback on COSO ERM draft
Why do accountants and other professionals need better risk management competencies?
My original article posted at http://theaccountant.org.mt/why-do-accountants-and-other-professionals-need-better-risk-management-competencies Risk management competencies can significantly improve decision making in any profession. The bad news is that these competencies do not come to us naturally. They have to be developed. Even if you do not operate in a high risk, uncertain environment one should consider the extensive research, into what is… Continue reading Why do accountants and other professionals need better risk management competencies?
Cognitive biases every risk manager must know (part 3)
Overconfidence bias The overconfidence effect is a well-established bias in which a person’s subjective confidence in his or her judgments is reliably greater than the objective accuracy of those judgments, especially when confidence is relatively high. Throughout the research literature, overconfidence has been defined in three distinct ways: (1) overestimation of one’s actual performance; (2) […]
