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Risk management failures?
The management team at Silicon Valley Bank failed to take precautions against rising interest rates that would devalue their assets.
Was that a risk management failure?
I call it a management failure. They knew or should have known of the risk and taken earlier action.
Some years ago, I got a speeding ticket because I failed to anticipate the presence of local police cars.
Was that a risk management failure?
I call it a personal, my management failure.
I made a bad decision, and the potential risk became a reality.
Some of my friends attended a large bridge tournament and took the risk of getting OVID-19. They got sick.
Was that a risk management failure?
I don’t think so.
People are too quick to call something a risk management failure, just because something bad happened. Maybe a bad decision was made.
In my opinion, a risk management failure is when decision-makers are given poor information – whether that results in an adverse event or not!
For example, if they are given a heat map instead of the information they need to make an informed decision, that is a risk management failure!!!
If a decision-maker is given the results of a model but can’t translate the quantified “level of risk” into actionable information in…
