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“Where do I start?” is a frequent question. “With the
business need, to best manage risk to business objectives” is our first answer. The need is to understand
the business environment and capabilities to understand "what if?" and then
prioritize needed actions to be a great company that
earns great returns by serving real needs in a complex and changing world.
In risk management, we focus on four areas: Risk Governance, Risk Evaluation and Risk Response -- and Continual Improvement. Thus, our more detailed answer to the “Where do I start?” question is based on those focus areas. We're ready to assist through fast-start problem-solving board and management workshops that accelerate business insight and save the 1/4 to 1/3 of wasted time and cost found in typical approaches.
Risk Governance Build more risk-return aware decision-making in the organization. Organizations still struggle with quality and speed of risk-aware decision-making, even though there is good insight on criteria for healthy governance. Risk leaders seek a full "seat at the table." This fast-start is designed to accelerate the process of bringing together both: 1) various silos of risk management and 2) integrating risk management into business decision-making and governance. The quick hit benefit is a comparison against four criteria for efficient and effective governance to foster more risk-return aware decisions to drive business performance (not just compliance). For the Board of Directors, risk oversight is about both 1) overseeing management risk process and 2) making more risk-return decisions in their own activities, such as M&A, strategy, financial planning, share repurchases, executive succession planning or board member education. Risk Evaluation Shift risk assessment to better business focus and more powerful insight. The c-suite is concerned about the cost/benefit of risk assessment and better detection of risk in "dark corners" -- risk assessment that looks at the range of threats to the range of business operations. Poor risk assessment distracts from effective fixing. How can leaders more easily shift to risk management that both drives better business decisions and is more efficient? For quick benefit, it starts with a combination of existing information on risks and on “dark corners." Through real-world, life-like scenario analysis (actors-actions-objects-impact-consequences - not single data points typically used), it not only evaluates risk, but seeks to improve business engagement and business objectives achieved. Risk Response Shift from reporting to providing insights for action to fixing problems. As risk management in financial institutions matures, more opportunities arise to seize business opportunity by fixing risk -- acquisitions, new products, new markets, new technology. Following in the proven paths of of managing risk in other industries, this means maturing from , compliance--drive, backward-looking reporting of end loss, to forward-looking evaluating of root causes, to reporting in patterns, to anticipating new losses, to fixing the sources of risk, to more efficiently fix by targeting risk responses ("killing more root cause birds with one well-planned stone"). It's all about building capacity to more safely achieve business objectives. These problem-solving workshops for boards and managers are different because they are:
Learn more with Video, audio and text commentary and analysis in risk management for financial companies. Read about Hot Topics in Risk Management
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