I was thinking about a post for the New Year that would highlight the changes I would like to see in both practices and thought leadership around the management of risk, when I listened to a new video from my good friend, Alex Sidorenko.
Alex had been attending a risk management conference in Dubai led by another friend, Alex Dali. In this video, he shares a key takeaway.
The risk management leaders at this global conference said that there were two indicators of effective risk management.
The first is that business decisions are informed and intelligent (my words). The consideration of risk is integrated into the setting and then the execution of strategies through daily decisions.
My caution is that when we are talking about ‘risk’, we should be thinking about all the things that might happen, not only harms.
In fact, as I wrote in my last book, we should be avoiding the word ‘risk’ as management has a negative perception of it.
- Most think it only relates to harms
- Managers tend to think of risk management as a compliance activity
In fact, if we think instead about anticipating what might happen and making informed and intelligent decisions with that in mind, there will be a common purpose and understanding between practitioners and the leaders of the organization.
That’s the second set of…