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StrategyDriven Risk Management Forum
All organizations face a host of risks incurred during the conduct of day-to-day business operations and stakeholder interactions. These risks challenge executives and managers in so far as they can have consequentially negative impacts on the organization’s ongoing sustainability from an operational, financial, reputational, and regulatory perspective.
Risk = Probability of an adverse event’s occurrence times the severity of the event’s impact should it occur
Organization leaders seek to manager their risks’ likelihood and/or impact; identifying, assessing, and prioritizing followed by monitoring, mitigating (accepting, avoiding, minimizing, or transferring), and controlling each risk. Effective risk management optimizes the cost of risk monitoring and mitigation with the expense incurred should the event occur.
Focus of the Risk Management Forum
Materials within the risk management forum focus on those principles, best practices, and warning flags associated with the effective monitoring, mitigation, and response to both identified and unidentified – Black Swan – risks.
For detailed insight on making and managing high-risk decisions, visit StrategyDriven‘s Decision-Making Forum.
Articles
Principles
- Value of Effective Risk Management [Complimentary StrategyDriven Premium Content]
Best Practices
- Best Practice – Map Corporate Risks to Operational Processes [StrategyDriven Premium Content]
- Best Practice – Integrated Risk Assurance Oversight Matrix [StrategyDriven Premium Content]
- Best Practice – Procedure Annotation and Commitment Tracking [StrategyDriven Premium Content]
- Best Practice – Risk Quantification [StrategyDriven Premium Content]
- Best Practice – Ongoing Risk Monitoring [StrategyDriven Premium Content]
- Best Practice – Monitoring for Organization-Wide Performance Risk Associated with Large Capital Projects [StrategyDriven Premium Content]
Warning Flags
- Warning Flag – Unadjusted Resourcing of Risk Monitoring Activities [StrategyDriven Premium Content]
Resources
Whitepapers
Books
- Why Some Firms Thrive While Others Fail by Thomas Stanton
Corporate Risk Analysis, Management, and Mitigation
We help reduce corporate risk exposure through an independent assessment of your enterprise risk programs. We can help you develop a risk profile, benchmark your risks against industry peers, identify risk management program gaps, and develop and implement a multi-year oversight program to manage your risks consistent with industry guidelines. Learn more about how we can support your implementation and upgrade efforts or contact us for a personal consultation.
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.
It’s counterintuitive to think of high overtime as being related to over staffing. Most view high overtime as a sign more workers are needed and current employees are over worked. In fact, managers are far more comfortable having bloated staffs rather than either an understaffed organization or one with a staffing level demanding cutting edge efficiency in order to get the work done.
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.
A performance measurement system’s complexity and organizational impact can bring with it many people, process, and technology challenges post implementation. For several months following a system go-live or significant upgrade, the organization adjusts its processes, procedures, and behaviors so to achieve the best possible reflected performance. This evolution is not without its costs or problems.
Business Programs