Risk Management Insights

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

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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23/02/2018 / Risk Management, Bow Tie Analysis, ERM, KRIs

Effective Risk Management Tool: Bow Tie Analysis

Protecht loves Bow Ties, both formal and informal!  Bow Tie analysis has been around for longer than you might think. 

While some industries including oil, gas and mining have been using the bow tie consistently for years, at a broader level it appears that other industries, such as financial services, are also now realising the value of this simple yet effective risk management technique.

What does the bow tie do? 

Bow tie analysis provides a tool to identify and map out the different components of risk including root cause, risk events, risk impacts and controls. 

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29/04/2016 / Bow Tie Analysis, Risk Controls

Bow Tie Analysis

Bow Ties usually conjure up a vision of a formal event, to be used infrequently for special occasions.  For risk bow ties, nothing could be further from the truth.  Risk bow ties are ideally used by the business as everyday wear. So what are risk bow ties and what is the value of making them part of your everyday?

The Bow Tie principal to analyse and document risk has been attributed back to Royal Dutch Shell in the 70’s / 80’s.  Since then, oil and gas, mining and pharmaceutical companies amongst others have used the Bow Tie principle to explore and communicate risk. More recently, financial institutions have warmed to the idea, seeing the benefit of this simple, yet comprehensive method to understand and communicate risk.

The Bow Tie technique is a logical way to explore and communicate risk. Its principles are simple, but the execution and presentation need care.

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23/12/2014 / Enterprise Risk Management, Bow Tie Analysis

The 'big five' risks facing Australian business in 2015

Australian businesses and organisations are currently facing an unprecedented confluence of five major risk factors — including surging regulation and skilled labour shortages — that could threaten future performance and even viability.

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