Rereading the title of this post, my first reaction is that this is stating the blindingly obvious. The problem is, in reality this is far from that obvious. More than once I've been confronted with situations in which risk acceptance by a manager turned out to become risk ignorance. And risk ignorance is just another … Continue reading Risk acceptance requires hard work
Tag: risk management
Practical steps to wider adoption of risk management: simplifying risk models for more frequent use
What went before ... In the early '00s, the relevance of using risk models was very much disputed. A number of leading companies in the risk management field did not see the reason to use models, as they felt that practice impeded organizations from assessing the entirety of their risks. In the late '90's of … Continue reading Practical steps to wider adoption of risk management: simplifying risk models for more frequent use
Regarding unknown unknowns, hindsight is 20/20
I've been teaching a risk management class at Solvay Brussels School (SBS) this week. Teaching these classes always brings home to me how much I love to teach. The exchange, the pace, the ideas ... as long as it stays concrete, I really feel as if I'm contributing and learning at the same time, even … Continue reading Regarding unknown unknowns, hindsight is 20/20
Is goal management in a public sector environment relevant?
Just finished a discussion with a friend on whether it's possible to do goal management in a public sector environment. But before we go into that, perhaps I need to define a goal first. Defining a goal A goal in a public sector context is, in my book, the object of your efforts, the aim, … Continue reading Is goal management in a public sector environment relevant?
Just managing your risk impacts is rarely a good idea
Risk impact management complements risk exposure management Managing risk impacts is a common practice among risk practitioners. It is a recognized approach which, if used well, complements actions aimed at reducing the likelihood of occurrence of a risk. What is more disconcerting is finding out that risk impact management is all that is being done … Continue reading Just managing your risk impacts is rarely a good idea
Why sum formulas better reflect the risk appetite in calculating risk levels
How to determine a risk profile and calculate a level of risk? Introduction This is a significant rewrite and a first time write-up in English of an article I published in Dutch in May of 2009. I'm revisiting it because I had an interesting exchange with my ERM class at Solvay Brussels School last week, … Continue reading Why sum formulas better reflect the risk appetite in calculating risk levels
Embedding risk management in the strategy cycle
As of its inception, there have been a lot of comments on COSO-ERM and how it can be applied in practice in an organizational setting. Those of you, dear reader, who have followed this blog know I am not an avid fan of the framework. However, contrary to some experts I don't agree the authors … Continue reading Embedding risk management in the strategy cycle
Fear is good – continuing the Kaplan conversation
Fear is GoodRemember the Gordon Gecko character in Oliver Stone’s landmark “Wall Street”? His credo was “Greed is Good”. I want to offer that “Fear is Good”. Fear has helped us surviving as humans, and fear - or its relevant equivalent - can make a survival difference for organizations as well, if we get it … Continue reading Fear is good – continuing the Kaplan conversation
A reaction to “Kaplan’s heresy”
I just found this very interesting blog post on the blog of Peter Bonisch. You can find the post here and I suggest you read the post in full.I’ve reacted to this post with my own thoughts on the subject matter. You can find my reply below.Hi Peter, Mike, Matthew,Just wanted to jump into this … Continue reading A reaction to “Kaplan’s heresy”
Stakeholder consultation in risk management
One of the elements COSO-ERM does not thoroughly address is stakeholder consultation in risk management. Sure, there is the required communication capping stone on top of the COSO pyramid, but the activities described therein fails to adequately address the needs and complexity of interacting with your stakeholders on a regular basis in the context of … Continue reading Stakeholder consultation in risk management
Exploring The Black Box 