RISK AWARENESS WEEK 2021 IS BACK! EARLY BIRD SALE ENDS IN 11 DAYS. DON’T MISS THE 80% OFF ALL ACCESS TICKETS

Our theme this year is better and greener decision making through risk management with specific focus on better planning, performance management and governance through risk management and decision science. Check out amazing speakers who already joined the conference https://2021.riskawarenessweek.com/ The objective this year is to bring risk management to non-risk professionals who would benefit from its… Continue reading RISK AWARENESS WEEK 2021 IS BACK! EARLY BIRD SALE ENDS IN 11 DAYS. DON’T MISS THE 80% OFF ALL ACCESS TICKETS

Recommended pre-reading for the RAW2021 conference

RAW2021 is coming soon and I wanted to share something valuable with you. During the conference you will hear many of the speakers talk about Risk Management 2 (RM2), decision science, decision quality, probability theory and other terms unfamiliar to many risk practitioners or business decision makers. These 3 things will help you to have… Continue reading Recommended pre-reading for the RAW2021 conference

Call for speakers. Share your risk management or decision making case studies with the world

Deadline for submission – 31 July 2021  We invite industry leaders and practicing risk management and decision support professionals to present their case studies at the RISK AWARENESS WEEK 2021 scheduled from 11-15 October 2021. RISK AWARENESS WEEK is an annual event that aims to promote risk management practices, risk psychology, decision science and quantitative… Continue reading Call for speakers. Share your risk management or decision making case studies with the world

What is a risk? It’s not what you think it is

If there is one thing I learned as a CRO, it is crucial to understand the nature of each and every risk we have to work with. I will no doubt write a separate article about the mistake of aggregating various risks into a risk register or attempting to use the same methodology to quantify… Continue reading What is a risk? It’s not what you think it is

Why Board Audit Committee is the worst place for risk management and having a separate Board Risk Committee is even worse

Over the last 10 years it became almost dogmatic that risk management effectiveness has to be disclosed at the Board level. It seems to be equally accepted that full Board is responsible for risk management oversight, who, however can and often do, delegate this oversight responsibility to the Audit Committee. This is in fact so… Continue reading Why Board Audit Committee is the worst place for risk management and having a separate Board Risk Committee is even worse

Compliance Risk Management – Risk mitigation and reporting

Risk mitigation and trade-off The treatment of compliance risks refers to the corresponding strategies implemented by an organization to deal with its risks. A risk treatment plan should consider a range of treatment options, which may include legal remedies as well as financial, operational and reputational remedies for each prioritized risk. The following factors should… Continue reading Compliance Risk Management – Risk mitigation and reporting

Compliance Risk Management – Risk analysis (part 5)

Step 5. Measure the effect of risks on decisions In order to account for the uncertainty both in the consequences of each scenario and its weight, consequence distributions are multiplied by weight distributions using the Monte-Carlo simulation method. Normally 10000 simulation runs should be sufficient for most compliance risks, however more simulation runs may be… Continue reading Compliance Risk Management – Risk analysis (part 5)

Compliance Risk Management – Risk analysis (part 4)

Step 4. Allocate weights to each scenario In order to determine the weight allocated to each consequence scenario of events triggered by compliance risk, historical data, modelling, as well as expert opinions, can all be used, individually or in combination. Weight of each scenario can involve the following factors: the range of laws, along with… Continue reading Compliance Risk Management – Risk analysis (part 4)

Compliance Risk Management – Risk analysis (part 2)

Step 2. Identify causes and consequence scenarios Causes and consequences for the bow-tie diagram are normally derived from the regulations as well as through consultation with risk owners and subject matter experts. Common consequence scenarios for compliance risks (just a quick example, there is more) include: Risk area Examples of consequence scenarios Licensed activities and… Continue reading Compliance Risk Management – Risk analysis (part 2)

Compliance Risk Management – Risk analysis (part 1)

Wherever possible companies should apply quantitative risk analysis to measure and prioritize compliance risks. Wait what? We can do better than a compliance heatmap? Apparently :)) The following information should be collected and recorded for each identified risk: Possible consequence scenarios as described in the legislation or other regulatory requirements (usually includes fines, 3rd party… Continue reading Compliance Risk Management – Risk analysis (part 1)