Practical ideas: KEEP IT SIMPLE

The golden rule of risk management – the simpler it is, the more transparent and easier it is to understand and implement!

The Risk manager’s goal should be helping organisations become more risk-based. Risk management tools and methodologies should be clear to the rest of the organisation and easily adaptable in the normal course of doing business. Otherwise, risk managers are likely to meet a lot of resistance or be simply ignored, which is even worse.

Risk managers need to speak the business language and avoid the risk management jargon when dealing with the business. The use of the terms VaR, EaR, CFaR may be perfectly acceptable to communicate with the CFO, but the Head of production will very quickly lose interest. Even the most basic terms like risk profile, risk mitigation, risk owner, risk assessment are unnecessary and completely avoidable.

HERE IS A QUICK CHECKLIST TO TURN THIS SECTION INTO ACTIONS

Alex has created a short bootcamp designed to help companies implement quantitative risk management. Imagine saving the company so much money that investing in risk management competencies and resources becomes a no brainer for the executives. That's exactly what Alex Sidorenko did at a global $10B chemical company and he has been kind enough to share his top tips and lessons learned with you each week. Sign up now!

Regularly sanity check your risk management methodologies. If they are not understood by the business they will not be adopted

USEFUL VIDEOS

  https://www.youtube.com/watch?v=h4o4OgubD1c

 

RISK-ACADEMY offers online courses

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Informed Risk Taking

Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!

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ISO31000 Integrating Risk Management

Alex Sidorenko, known for his risk management blog http://www.riskacademy.blog, has created a 25-step program to integrate risk management into decision making, core business processes and the overall culture of the organization.

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Advanced Risk Governance

This course gives guidance, motivation, critical information, and practical case studies to move beyond traditional risk governance, helping ensure risk management is not a stand-alone process but a change driver for business.

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