You have an appetite statement that is expressed in terms of the risk you are willing to take to achieve your objectives and you have started operationalising it via your policies, frameworks, processes and systems. Next is training. Who is going to review all of your key policies, frameworks, processes and systems to ensure they
Appetite is the “A” word. For many it is a vexed issue (see last week’s blog on the benefits of a Risk Appetite Statement). Operationalisation is the process of translating the board and executive’s appetite for doing business. As is the preference of some, it will be through financial delegations and rates of return on
Unfortunately, I am still often talking to executives or board members who are skeptical about the value of documenting their risk appetite. I point out to them that in the absence of a properly thought through and compiled risk appetite statement, all you have is an implied level of suitable risk taking. And that employees
Last week I promised you an example of my Pathfinder Model in action. I’ll do better than that, here’s a link to three examples in Chapter 8 in my book Persuasive Advising: How to Turn Red Tape into Blue Ribbon. One describes a scenario for a risk professional, another for a finance professional and another
Taxes are a necessary burden. However, many risk professionals carry an unnecessary burden that is withholding them. The burden of silence. For any staff member to call something out, or even to voice disagreement with senior leaders, they need to feel psychologically safe to do so. Including risk professionals. However, being in the position of having to