RISK-ACADEMY is arguably the most controversial blog about corporate risk management and in 2017 we tried to break some conventional concepts by offering a better, more effective and cheaper alternatives. Here are top 5 blog posts from 2017:
#5 3 fatal mistakes corporate risk managers make (part 2)
I have been in corporate risk management for over 14 years, this is by no means a record or even mildly impressive, it is merely long enough to notice some trends. Just like many others, I like soul searching, finding out new way to integrate risk into what is important for business, trying different tricks to improve culture and dropping risk analysis tools that simply don’t work. The last 3-4 years really have been quite amazing in terms of the shift in thinking we are experiencing in corporate risk management. A new paradigm is beginning to appear and take shape with more and more people writing about risk-based decision making and culture. Somewhat ironically this shift has also uncovered some ugly truths. I have tried to summarize them in 3 buckets…
#4 4 steps to integrate risk management into strategic planning
Let me first start by saying integrating risk management into strategic planning is NOT doing a startegic risk assessment or even having a risk conversation at the strategy setting meeting, it is so much more. You will also find it difficult to relate if the objectives have not been defined or documented in your company or if the objectives are not measurable. Kevin W Knight, during his first visit to Russia a few years ago, said ‘risk management is a journey… not a destination’. Risk practitioners are free to start their integration journey at any process or point in time, however I believe that evaluating strategic objectives@risk can be considered a good starting point. The reason why I think this is a good starting point is because it is relatively simple to implement, yet has an immediate and a significant impact on senior management decision making.
#3 8 best risk management books
People regularly ask me about good risk management book. Not the ones teaching us how to do a better qualitative risk assessment. It’s impossible, so just stop doing them. Instead, good, really good books, that talk about risk phylosophy and integration of risk management into decision making.
#2 3 fatal mistakes most risk consultants make
Risk management in modern non-financial companies is very different compared to say 5 years ago. The level of risk management maturity, for lack of a better word, has grown significantly. As more and more companies across the globe are looking to implement robust risk management, the demand for risk management consultants is also growing. Unfortunately, not all risk consultants are able to generate long term value for their clients, here are three reasons why…
#1 The whole concept of risk-appetite is total nonsense
The concept of risk-appetite has been around for years, yet so many risk practicioners still find themselves confused and unsure how to quantify, formalise and document it. Well, the short answer is YOU DON’T NEED TO. There is a better way.
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