Entries by Nathan Ives

Risk Management Warning Flag 1 – Unadjusted Resourcing of Risk Monitoring Activities

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Major projects typically add significant operational, financial, reputational, and regulatory risk to an organization’s overall risk profile. This project risk may by itself exceed the normal level of organizational risk leaders are accustomed to dealing with. Consequently, these strategic projects demand the implementation of risk identification, monitoring, mitigation, and control activities. These risk management activities, however, are often unaccounted for in the project’s budget and instead draw resources away from the organization’s other risk management efforts; diminishing the business’s overall ability to effectively manage its other risks.

When in the Course of human events… a nation was born

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  “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the […]

Risk Management Best Practice 4 – Risk Quantification

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Each organization faces a unique set of risks challenging the continuity of its operations. All risks, however, are not equal. In order for an organization’s leaders to economically manage their business’s risks, they must first understand each risk’s inherent and residual value. Failure to quantify the organization’s risks produces a less meaningful set of potentially adverse events; lacking relevance, priority, and return on investment information and often resulting in the application of either too many or too few resources applied to address these challenges.

Evaluation and Control Warning Flag 2 – Absence of Evidence as Evidence of Absence

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When examining organizational performance, assessors too often fall into the trap of concluding that the absence of adverse outcomes indicates a lack of underlying performance issues. This is an evidential fallacy. Many organizational shortfalls exist without causing consequential outcomes for reasons of redundant barrier prevention, lack of recognition, or simply blind dumb luck. The lack of a noticeable consequence does not necessarily equate to an absence of an issue; it simply means that the problem itself, up until the point of examination, has not manifested itself in a substantial outcome.