5 red flags 🚩when just starting to implement risk management

Ok, the title is obviously irony, because no organisation on the planet is ever “just” starting to implement risk management” or “starting from scratch”. Organisations have been making risk-based decisions since the inception. Often poorly, but that’s another point altogether. And yet, far too many job advertisements I see are looking risk specialists to build… Continue reading 5 red flags 🚩when just starting to implement risk management

5 red flags 🚩when hiring a risk manager

One of the biggest issues in the risk management profession is that many, way too many, people who have the title of risk manager are not really qualified to do the job. Many don’t even have the minimum required education. Imagine a doctor who vaguely remembers doing biology in year 9 high school. Well that’s… Continue reading 5 red flags 🚩when hiring a risk manager

94. Can we quantify any risk?

Alex Sidorenko from RISK-ACADEMY answers a question whether we can and should quantify every risk in non-financial companies. What do you think? – – – – – – – – – – – – – – – – At RISK-ACADEMY we have compiled free videos of lectures, seminars and interviews with Russian risk managers, as… Continue reading 94. Can we quantify any risk?

Practical ideas: Select the risk governance model that best suits the current risk maturity level

The risk governance model depends on the management and shareholders’ expectations as well as on the risk manager’s competencies and on the resources available for risk management implementation. The risk governance model can be built based on the classical concept of three lines of defence: The 1st line of defence – Business units: executives, business… Continue reading Practical ideas: Select the risk governance model that best suits the current risk maturity level

Practical ideas: Promote risk management within and outside the company

Risk managers need to learn to be proud of their contribution to the overall success of the company. Once the company achieves positive results by managing certain risks to a high standard, it is up to the risk manager to share this success both internally and externally. This can be done by presenting at various… Continue reading Practical ideas: Promote risk management within and outside the company

Practical ideas: Consider establishing a Risk Management Committee at the management level or extend the mandate of the existing management committee

Most of the risk managers we have interviewed agreed that having a management level Risk Management Committee has a significant positive effect on the overall risk management culture. While the composition of the Risk Management Committee can vary from company to company, it should be sufficiently representative to ensure different points of view on risk… Continue reading Practical ideas: Consider establishing a Risk Management Committee at the management level or extend the mandate of the existing management committee

Here is a small lesson I learned a while back

If you want to integrate risk management into decision making, you have to talk the same language as decision makers. That means that if the decision is made based on IRR you need to calculate an alternative IRR, based on risks. If the decision is made based on NPV/EV/FV you need to calculate new NPV/EV/FV… Continue reading Here is a small lesson I learned a while back