The focus today among leading ‘risk’ thought leaders, including at COSO, is on decision-making. For example, COSO ERM says: “From day-today operational decisions to the fundamental trade-offs in the boardroom, dealing with risk in these choices is a part of decision-making”.
Think about it. How can we or our organizations be successful without sound decision-making?
How can we, as practitioners, help leaders make informed and intelligent decisions that consider all the things that might happen?
Some years ago, Grant Purdy (the grandfather of Australia/New Zealand’s risk management standard 4360, the precursor to the global standard, ISO 31000) told me that when he is engaged to help an organization upgrade its ERM program, he doesn’t talk to management about risk. Instead, he asks:
“How do you make decisions?”
Grant has teamed up with a fellow Aussie, Roger Estall, to bring us Deciding: A Guide to Even Better Decision-Making.
The book is an interesting read, with some useful perspectives and advice. It will help you challenge your and others’ decision-making processes.
Over the years, both Grant and I have been on a journey of discovery. We have both moved away from what I would call traditional risk management, recognizing that it really is not helping leaders make…
