It’s time we did something about the persistent perception of risk as a compliance function. Something that is done to keep the board, the audit and risk committee or a regulator happy. Another task in addition to running a successful organisation.
STOP. Before you decide that risk is valued in your organisation - ask yourself if the executive simply say they know and believe in the importance of the risk function or if they truly utilise the outputs from risk processes in their decision making. Is risk an afterthought or is good risk assessment demanded at the right times for the right reasons?
LOOK. Before you cast blame. Look at your risk function and ask if what they are doing and how they are doing it is valuable to an executive team. Are they providing real insights to improve decision making? Is the information communicated in a clear, concise and timely manner?
LISTEN. Before you move on. Go and speak to key stakeholders of the risk function and ask them what they value and what they don’t. Listen carefully for the word “but”. Are they really happy to attend the next meeting with the risk team?
Yes, it’s time we elevated the risk function in organisations, however, more importantly it’s time we fixed ineffective approaches to the management of risk in organisations.
And that is why I have written Risky Business: How Successful Organisations Embrace Uncertainty. It is a book for senior leaders, risk practitioners and others interested in ensuring their organisation embraces uncertainty. That risk management is used to take calculated risk, eyes wide open, bringing all stakeholders along the way.
As a reader of my blog, you are invited to my online book launch on Thursday 25 February at 4pm AEDT and if you attend you will receive a FREE copy of my book. REGISTER HERE. Be one of the first 50 to register AND attend and you will receive Risky Business with an additional gift.
Stay safe and REGISTER for the launch!