At the risk of sounding controversial, we believe risk managers sometimes need to take responsibility for providing an independent risk analysis not based on the information supplied by the management. Although rare, there may be situations where manager approving the project or making a decision has significant conflicts of interest or there may be suspicion… Continue reading Practical ideas: TAKE OWNERSHIP OVER SOME RISK ASSESSMENTS
Risk managers have a unique competency to identify and analyse risks using advanced tools like scenario analysis, sensitivity analysis, decision trees and Monte-Carlo simulations. This toolset can significantly improve business decision making. And just like any other service or tool it needs to be marketed to the rest of the organisation. Risk management needs to… Continue reading Practical ideas: PROMOTE RISK MANAGEMENT AS A SERVICE
Podcast: Play in new window | DownloadSubscribe: Android | RSSNowadays, risk management is on everyone’s corporate agenda; let it be a private or public organisation. A special attention to risk management is paid by governments, stock exchanges, shareholders and regulators. However, this hasn’t always been the case. We began our risk management research back in… Continue reading PODCAST: Guide to effective risk management 12.05.2018
Risk managers can bring a lot of value to the company by informing management about emerging risks. To do this, risk managers need to establish procedures for scanning the external and internal environment, for identifying emerging risks, recording them and informing senior management in a timely manner. In order to identify emerging risks, risk managers… Continue reading Practical ideas: INFORM MANAGEMENT ABOUT EMERGING RISKS
Validating management assumptions is probably the single most important value a risk manager can bring to his / her company. As companies and markets are becoming more interdependent, an issue in one industry or country may have a flow on effect on the global supply chain. The business environment is becoming more volatile. Unfortunately, many… Continue reading Practical ideas: VALIDATE MANAGEMENT ASSUMPTIONS
During my recent trip to Australia, I had an amazing opportunity to sit down with Grant Purdy to talk about where risk management started in Australia, the origins of the AS/NZS4360 and the ISO31000 and why modern day risk management, as perceived by majority risk managers in non-financial companies, is an embarrassment to the profession. Grant… Continue reading The most amazing risk management interview… ever…
If the embedded image below doesn’t work, click https://www.slideshare.net/AlexSidorenko/rm1-vs-rm2-which-side-will-you-choose RM1 vs RM2 – which side will you choose? from Alexei Sidorenko, CRMP
Watch the recording of a live debate between J.D. Solomon and Alex Sidorenko on whether risk matrices/heat maps have a place in risk management or should they be avoided like plague. J.D.Solomon argued that risk matrices are the “gold standard” for risk analysis in most industries and all of those people cannot be wrong. Risk… Continue reading RECORDING: Why risk matrices are immoral… or are they?
I feel risk management is on a verge of something interesting, something very exciting at the moment. For a long time, I naively thought that by doing good risk management all the key stakeholders would be satisfied, but the reality is, different stakeholders want completely different things. There is risk management 1 – risk management for… Continue reading RM1 vs RM2 – which side will you choose?
Join J.D. Solomon and Alex Sidorenko on 3 May 2018 to debate whether risk matrices/heat maps have a place in risk management or should they be avoided like plague. For anyone following my blog for a while, you know how much I dislike qualitative risk analysis techniques in general and heat maps in particular. I… Continue reading THE RISK DEBATE CONTINUES: Why risk matrices are immoral… or are they?