Traditional/conventional risk management produces a list of risks that is reviewed by management and the board every so often.
While you can call that ‘risk management’, it’s not doing much to help people make informed and intelligent decisions – the decisions necessary to deliver performance and achieve objectives.
Some people seem to think that changing the name from “enterprise risk management’ to “integrated risk management” is the answer.
No.
There has to be a shift in thinking, followed by a transformation in processes and practices.
I find it refreshing to see many leaders spreading the message.
Here’s another one whose words merit our attention. He explains the situation and what needs to happen very well.
Marinus de Pooter has been in the risk management field, initially with EY, for many years. He always enhances a discussion with his thoughts, which I very much appreciate.
In a presentation to the 2024 Risk and Resilience Festival at the University of Twente, in the Netherlands), he said “Stop managing risks!” This is a refrain I have used many times over the years, and it was refreshing to see many points in his speech that echo or expand my messages.
For example, he said (with my highlights and comments):
Executives are expected to consider what keeps them awake at night. In…
