I know it’s hard to design a risk framework everyone likes and agrees is fit for purpose – actually, I’d say it’s impossible – but some are shameful.
When I deliver the RMIA’s Enterprise Risk Management Course, I’m constantly reminding participants that their frameworks must be designed to drive the right behaviours for their organisation. And while there’s no lack of best practices to choose from, anyone who’s attended conferences, seminars and webinars proffering best practice comes away with – a mile-long shopping list of best practice. The lesson is understanding that not every element of framework design is going to suit your organisation. Take the Department of Defence and the Australian Ballet: both highly disciplined organisations, however they require different framework designs.
The best tip for developing a framework that will drive the behaviours you want and grow the maturity of your organisation? Stand in the shoes of the business and design your risk framework around you – that is, while you are almost literally standing in the business.
When is the last time you looked at your framework from this perspective? Try it, you’ll be surprised at what you see.