Excellent points made by a prominent CRO

Earlier this week, I enjoyed a conversation with Joshua Rosenberg, Executive Vice President and Chief Risk Officer of the Federal Reserve Bank of New York.

I was great to chat with a gentleman who has a prominent position, and whose thinking on risk management appears to be well aligned with mine (with a few exceptions, like risk appetite and risk registers).

His October speech to the Central Bank of Nigeria’s Second National Risk Management Conference made some excellent points, including:

• …by integrating risk management into plans, decisions, and actions, we can succeed over a wider range of possible futures, not just the future we expect (or hope for).
• … potential misunderstandings that might prevent us from getting the most out of risk management. The first is that risk management is mainly a way to stop bad things from happening. Of course, risk management should help us reduce the frequency and size of negative events and then recover more quickly and effectively when negative events occur. But, risk management, in my view, should also help the right things happen by giving us tools to work more effectively.
• Second, risk management could be misunderstood as primarily the…