Decision risk management - made simple
Decision risk management is relevant for big strategic decisions as well as smaller, and even day-to-day decisions. Especially to cater to the latter, this article is an approach, which can be applied mentally and within the timeframe of making a decision - and scaled to cover the large, complex and expensive decisions.
Decision focused risk management is not that different
Moving from traditional into decision focused risk management is a challenge, and may be overwhelming to some - don't worry. The key difference is timing and all of your traits as risk manager comes to good use in decision focused risk management as well.
From Risk Management to Success Assurance
Risk management has for years been built on a frame of reference emerging from Finance, Audit or Insurance functions. This may not be optimal, and I here suggest leveraging the paradigm of Quality Assurance as the frame of reference for risk management.
- - - 2018 Articles - - -
Technology risks … and opportunities
The 4th industrial revolution speaks about the digitalization of "everything". This is predicted to lead to disruptions and risks. However, it will also lead to opportunities like the world has never seen before. Balancing this with optimal risk taking is not easy, but well worth while.
Don't waste time managing risksRisk management specialists have to step up and add value by focusing on optimizing business performance to stay relevant. This invokes new processes and required new skill - compared to traditional risk management approaches.
Cyber is not a risk
There is a lot of discussion and worry about cyber risk. However, this is not one risk - but a category of different risks (and opportunities) each with it's own severity and approach for handling.
When disaster hits
Most risk management is focused on reducing the likelihood and impact of adverse events. The proactive also look for intelligent risk taking. Still - now and then disaster hits, and now the active risk management has to stand it test of real life.
Balanced approaches to risk management
Risk management has evolved, and two essentially different approaches has emerged. The traditional risk centric management of taken risks, and the emerging performance centric management of risk taking.
ERM - The risk managers tool
Enterprise Risk Management is an approach and methodology to help the risk manager direct decision making when needed. Not a "one-size-fits-all" compliance register.
Rethinking the three lines of defence
The concept of having three lines of defence has been around for a long time. In the volatile world of today and the future, this concept needs to be redefined to remain relevant.
ISO 31000 Update
The ISO 31000 has been updated from the 2009 version to a 2018 version. This is a more focused edition, without any major changes - but repeatedly highlighting the need for risk management to be an integral part of decision making.
2018 State of Risk Management ReportThis report has just be released, and shows some progress - but alas only a little, and in some ways - in the direction of more bureaucracy and
control, and less towards effective decision and intelligent risk taking.In the below, I comment on the key findings.
Imagine and prepare for 2030
This article leverage the AKTUS "Prepare for Uncertainty" scenario process to address 2030 and pinpoint issues to consider for businesses and organisations already today.
Business Continuity - Strategic PerspectiveThis article has been published in the January edition of the Risk Insights Newsletter. The focus is applying known business continuity approaches to strategy as well.
Speed of change - Stop whining and leverage itGareth Byatt of Risk Insights and I have co-authored this article on the opportunity of leveraging the ever increasing speed of change. The article has been published January 2018 on Strategic Risk/Europe and as a series of three smaller pieces in Strategic RISK Asia/Pacific
Future jobs - Different school subjectsThe world is changing and machines will take over any task and job that can be described systematically to any degree. What will be left for us humans are jobs based on creativity and empathy. Preparing todays children for tomorrows means we need to teach these subjects explicitly.
From traditional to strategic risk managerThe role of a strategic risk manager is very different from that of a traditional risk manager. This article describes the change of tasks and skills requirements etc.
- - - 2017 articles - - -
A practical guide to risk toleranceThe ISO and COSO standards talk about risk tolerance and risk appetite. This article provides a practical guide to the definition and use of these valuable concepts.
Winning with projectsProject risk management is more than ensuring delivery on time/on budget. This article describes how holistic risk and opportunity management for projects can vastly enhance the value and success rate of a project.
Uncertainty and strategic advantageAll organisations live in a world of uncertainties. These can be leveraged as strategic competitive advantages by applying the tools and approaches of risk management in the decision making and strategy processes.
Utilize your risk appetite and toleranceThe level of managing risks depends on your risk tolerance, yet many companies have not defined this. By knowing what level of risk, you are prepared to take, you can leverage this to take on more risks in pursuit of higher aspirations.
Faster changesThe world is changing at an ever-increasing speed. This may be true, but change is the only constant – a more than 2000 year old quote. As a leader, leverage this to your advantage.
Risk-based decision makingI had the pleasure to participate with Alexander Larsen, Danny Wong, Alexei Sidorenko in a panel discussion led by Kin Ly of StrategicRISK. We discussed the why, the obstacles and the how's of implementing decision focused risk management. The 48 minute discussion can be seen here.
Risk managers as decision facilitators
In this brief interview with Kin Ly from StrategicRISK, we discuss how risk managers can and should leverage their insights to enhance decision quality on all levels.
I had the pleasure to speak at the New Year assembly of the Danish Building Society. The slides from here (in Danish) are downloadable below.
ERM - fraud or valuable tool
Alexei Sidorenko of Risk Academy and myself have a discussion around Enterprise Risk Management. As we do not agree on the approach, there are plenty of nuances in this webinar.
Risk-!n conference, Basel
I was proud and happy to collaborate with Katja Rieger of Rippleeffect delivering the opening address at the 2018 Risk-!n conference in Basel on 31 May.
Business leadership group introductionThis presentation - in Danish - has been, and is, given to business leader groups (VL grupper) on request as inspiration for a discussion about intelligent risk taking
Risk Management as value driver
This half hour podcast is a discussion between risk visionary Alexei Sidorenko and myself from December 2017 on risk management as a driver of maneuverability and value to a company.
Leverage your risk tolerance
This presentation was prepared for the IDA Risk forum in Copenhagen in December 2017. It outlines why and how to apply intelligent risk taking.