Making Sense of Disparate Data
It is very easy to run workshops, collect incidents from around your industry and brainstorm nasty things. But how do you turn this into an effective and usable list of prioritised issues for planning?
It's hard work, but we have proven approaches to produce the best quality data to take forward.
Embedding Risk Management
An easy-to-say Turnbull requirement. But how do you make sure your management reviews do it (comprehensively), but don't do it twice? This is a particular challenge when the risk issues you are dealing with include your main strategic concerns.
This is why every organisation has to make sure its risk management is aligned with its specific day-to-day systems, processes and culture. It's not an add-on and can't be designed in a vacuum.
When to Quantify
Risk is a fundamentally quantitative concept. It's concerned with the probability (a number, albeit a subjective one) of certain consequences. Some find this difficult and try to find ways to avoid this simple truth using matrices and the like.
These ways often work well but sometimes quantifying the risk adds a lot of value. How do we know when this will be the case and how can we do it with minimum effort and in ways which managers can understand?
This is the topic of our forthcoming book on quantitative analysis Estimating Risk: A Management Approach.
It's easy to draw a graph of how a greater focus on visible risk management will improve performance - financial and otherwise. Can you demonstrate the improvement convincingly enough to management?
Can you do this when the benefit is the risks that don't materialise!
These are four of the many challenging questions on our own risk agenda.