In 1946, mathematicians at Los Alamos developed Monte Carlo simulation to model nuclear reactions under uncertainty. By the 1990s, sophisticated mathematical approaches to risk helped win Nobel Prizes and generate billions in financial markets. In 1998, Long-Term Capital Management (LTCM) showed us the limitations of risk models. Today? Many organizations have reduced risk management to… Continue reading How risk management turned into a meaningless ritual
Beyond KRIs: Making Performance Metrics Risk-Aware
Risk managers developed a troubling tendency to create parallel systems for everything. One prime example is the separation between Key Performance Indicators (KPIs) and Key Risk Indicators (KRIs). Everyone is using KRIs without even realising how RM1 they are. This artificial division doesn’t reflect business reality and creates unnecessary complexity while reducing effectiveness. The problem… Continue reading Beyond KRIs: Making Performance Metrics Risk-Aware
Can you build an AI model that identifies risks better and faster than humans? I did.
Imagine if you needed to perform a risk assessment for a contract, project or the whole company and you had the luxury to sit down and chat with CFO about financial risks for hours. You could ask questions about everything the finance team does, the sources of funding, credit, liquidity, FX, insurance, taxes, financial controlling,… Continue reading Can you build an AI model that identifies risks better and faster than humans? I did.
Whether you want to or not, AI will shape the future of risk management
When I moved from a multibillion dollar global fertiliser company to a ramping up rare earth mining company in Brazil, my operational risk team went from 9 to 3 people. I thought we would have to scale back on the risk management projects and the types of quant risk models our team built. But then,… Continue reading Whether you want to or not, AI will shape the future of risk management
FERMA just named RISK AWARENESS WEEK the Training & Education Programme of the Year. Join 20 000 risk managers from 120 countries at RAW2024.
The Federation of European Risk Management Associations (FERMA) has named RISK AWARENESS WEEK – largest virtual risk education platform the Training & Education Programme of the Year. This prestigious award recognizes the event’s outstanding contribution to raising risk management awareness among organizations globally. FERMA’s recognition is a testament to its profound impact on the risk… Continue reading FERMA just named RISK AWARENESS WEEK the Training & Education Programme of the Year. Join 20 000 risk managers from 120 countries at RAW2024.
Try RAW@AI, probably the best risk management AI assistant on the planet
RAW@AI offers risk management and quantitative risk assessment support to help you make informed decisions. Our AI-powered set of tools simplifies complex risk management tasks, saving you time and effort. RAW@AI can do your research, identify risks, write perfect risk descriptions, break down complex risks and suggest mitigations, write risk management policies, quantify risks and… Continue reading Try RAW@AI, probably the best risk management AI assistant on the planet
RISK-ACADEMY’s guide on risk reporting to the Board
Every decision you make comes with its own set of risks, and waiting until the next quarterly review to address them can leave your projects exposed. This guide is built on the idea that risk analysis should be embedded into every decision you make, not just as a periodic exercise to update an enterprise risk… Continue reading RISK-ACADEMY’s guide on risk reporting to the Board
3 Risk Management Ideas from the Future
I believe there are 3 things risk managers of the future will be doing. Today, most of you are doing number 1, some, very few, are doing number 2 and almost no one is doing number 3. Risk managers of the future will be spending 50% of their time on number 3, 49% of their… Continue reading 3 Risk Management Ideas from the Future
Risk managers, stop wasting your life doing RM1
Are you feeling frustrated and unappreciated in your role as a risk manager? Do you sense that your efforts aren’t making any impact on business performance? Are you ignored when important and risky decisions are being made? It’s time to confront the truth: ERM, or RM1 as I call it, is holding you back. This… Continue reading Risk managers, stop wasting your life doing RM1
10 lessons risk managers should learn from Annie Duke’s Thinking in Bets
Every year I update my must read list for risk and insurance managers. Annie Duke’s Thinking in Bets is a new addition to my list. A risk manager on my team just finished reading it and he used RAW@AI to summarise they key points for risk professionals. Enjoy! 1. Life is poker, not chess Our… Continue reading 10 lessons risk managers should learn from Annie Duke’s Thinking in Bets
