What if everything your organization calls “risk management” is actually making you poorer and more vulnerable? While companies worldwide pour billions into risk registers, ERM frameworks, and risk committees, they’re missing the most profound opportunity in modern business: transforming risk management from a cost center into a profit engine that could slash expenses and generate… Continue reading Risk management is broken: why savvy professionals move beyond ERM
Tag: quantitative risk analysis
Stop avoiding the risk quantification elephant in the room
In a profession dedicated to identifying and managing uncertainty, there exists a puzzling contradiction: many managers actively avoid quantifying the very risks they’re tasked with. You probably know risk managers like that, we all do. While quantitative risk analysis forms the foundation of effective decision-making under uncertainty (see any textbook on decision science), it remains… Continue reading Stop avoiding the risk quantification elephant in the room
Flexible distribution is better than Triangular or PERT, project managers and cyber risk beware
In my last post, I introduced you to the game-changing concept of flexible distributions. If you haven’t read it yet, do yourself a favour and check it out here: You don’t need to worry about which distribution to use any more. With flexible distributions, available on MakeDistribution, the distribution molds itself to fit your data… Continue reading Flexible distribution is better than Triangular or PERT, project managers and cyber risk beware
You don’t need to worry about which distribution to use any more
Let’s face it – one of the biggest excuses risk managers use to avoid quantitative analysis is the paralysis that comes from choosing the “right” probability distribution. The selection options in ModelRisk can make your head spin: Overwhelming, right? And that’s just one tool. The @RISK plugin also has over 90 distribution functions! It’s like being… Continue reading You don’t need to worry about which distribution to use any more
How quantitative risk analysis can transform insurance buying and other business decisions
Alex Sidorenko, group head of risk, insurance and internal audit at Serra Verde Group, shares why technological advances mean that every CRO can tackle quantitative risk analysis to improve threat management and insurance buying Alex Sidorenko, group head of risk, insurance and internal audit at Serra Verde Group, is speaking at the Risk-!n conference on May 30-31 in… Continue reading How quantitative risk analysis can transform insurance buying and other business decisions
What is a risk register why you DO NOT need it
Let’s illustrate the type of problems typical risk registers create and why the use of qualitative or scoring risk registers use should be avoided by management and not accepted by the Boards. Imagine the company has 10 risks in its corporate or project risk register. Board wants to know how these 10 risks affect the… Continue reading What is a risk register why you DO NOT need it
The lamest excuse for not quantifying risk and you are probably guilty of it too…
Every time risk professionals would have a conversation about risk analysis and specifically risk quantification, someone, inevitably, would come in on a high horse and use this excuse to supposedly undermine the conversation. The argument is completely false and yet, sure as day and night, someone always repeats it. See if you can spot it… Continue reading The lamest excuse for not quantifying risk and you are probably guilty of it too…
4 types of risk analysis, 1 bad and 3 good examples
Say what you will about risk management in financial services, one thing is for sure, it is much more mature than risk management outside of financial services, at least when it comes to credit and market risks. Don’t get me started on operational risk management at banks, it is often embarrassing to put it mildly.… Continue reading 4 types of risk analysis, 1 bad and 3 good examples
5-week risk quantification bootcamp by Alex Sidorenko and #Archer
Archer got together with Alex Sidorenko, FERMA Risk Manager of the Year 2021, RIMS International Honoree 2021, to create this practical bootcamp designed to help companies implement quantitative risk management that pays for itself. Imagine saving the company so much money that investing in risk management competencies and resources becomes a no brainer for the… Continue reading 5-week risk quantification bootcamp by Alex Sidorenko and #Archer
3 steps to make your business more resilient
Don’t ignore expected losses In risk management there is a concept that will be useful for any business out there, it is called – EXPECTED LOSSES. This means that certain risks are inevitable and will occur no matter what. Stealing in retail, foreign exchange fluctuations or customer bad debts are all examples of losses that… Continue reading 3 steps to make your business more resilient
