Risk Management Insights

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25/05/2018 / Bow Tie Analysis, Risk Culture, Risk Appetite, Risk Manager

Are you a risk manager?

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I am often asked “what are the key requirements that make a good risk manager?”  My first response is “to be able to walk on water”. Such is the required varied skill set of a good risk manager.

The roles and responsibilities of the risk manager are many and varied depending on the organization they belong to. I will use the example of an organisation that has an independent risk management function where risk, and the day to day management thereof, is owned by the business. Let’s look at the key characteristics of the CRO and the staff of the independent function.

The main function of the independent risk manager is to review and challenge what the front line business is doing to manage risk. In addition, they should be seen as subject matter experts and assisters in developing and maintaining the risk management frameworks. They should be seen as value-adding and adopted by, and engaged with, front line staff.

What are the key skills and characteristics needed to be a success in this role? Here is my list:

  1. Risk management is to a large degree an art form. This requires a strong right hand (artistic) brain, able to cope with qualitative and inexact concepts and able to “see” into the future.

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20/05/2016 / Enterprise Risk Management, Risk Management, Risk Appetite

When to Invite 'Good' Risk

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During this month we have been talking about Risk Management and Risk Appetite. NSW Business Chamber also interviewed Our CEO Alf Esteban on the value of risk management to organisations - regardless of size. We wanted to share this article with you; we hope you find it useful:

Don't just tick the box of risk management - think outside it.
It's where real value lies.

As kids we’re taught to avoid risk but embracing it may be the best thing you can do for your business.

Risk management is a day-to-day part of running a business, but many organisations are failing to manage their risk effectively, resulting in reduced productivity and even profitability. 

Look through negative perceptions

“There is a perception that all risk is bad in business and that ‘managing’ it is just about compliance,” says Alf Esteban, Chief Executive Officer of risk management company Protecht. “Consequently many businesses look at it as something they have to do, a box they have to tick, without seeing the value of it.”

In fact, placing a higher value on risk management is one of the best things you can do to ensure your business flourishes. 
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06/05/2016 / Risk Management Training, Risk Appetite

Risk Appetite – The starting point of great risk management

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The concept of risk appetite has been around for a number of years now and many organisations have developed a form of risk appetite as part of their overall risk management framework.

The process is not easy, from deciding on how the appetite should be articulated and the exact content of the statement to how the risk appetite can be cascaded through the organization to be practically used in decision making and risk evaluation. These are all difficult challenges.

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18/11/2015 / Risk Culture, Risk Management, Risk Appetite, Performance Management

How to Balance Risk and Reward in your organisation?

Finding the Optimal Balance to make better decisions

Organisations, or more precisely, the employees of organisations, make hundreds, if not thousands of decisions a day.  Some are major, such as deciding on strategy or whether to purchase a new system while many are small, such as whether to take the stairs or elevator or where to place your coffee on your work desk.

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23/01/2015 / Enterprise Risk Management, Risk Management, Risk Appetite

Risk Appetite - how hungry are you for risk?

The setting of an organisation's risk ‘appetite' is a critical component of a robust risk management framework. 

This article addresses:

  • What does risk appetite mean and who should set it?
  • How should risk appetite be articulated and how can it be set? 
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