This is going to be a longer post than normal, so please make sure you have the time to read and consider it.
It includes not only a case study based on a real-life risk-based decision (as if some are not risk-based!), but also a discussion of a “model” for considering all the sources of risk and opportunity when making a decision.
The themes or principles are:
- The risk practitioner needs to help make the informed and intelligent decisions necessary to achieve enterprise objectives (i.e., success).
- The risk practitioner needs to ensure decision-makers have the information they need, tailored to each decision.
- All the significant sources of risk and opportunity (i.e., what might happen) need to be considered together, not individually. Evaluating and treating them individually can lead to sub-optimal decisions.
I would value your thoughts on my approach, how the case study was ‘solved’, and whether future risk management standards/frameworks should address the multi-risk scenario.
There are six sections:
- Commentary
- A case study is explained
- The results of the initial assessment and decision
- Mitigation and the final assessment
- Discussion of the process followed
- Closing thoughts
COMMENTARY
The way I see it, many if not most risk practitioners are too tied up in their own (i.e., insular) thinking, too…
