Risk visualization can help executives make decisions not only to manage risks but to optimize outcomes and achieve objectives.
I have to agree with the author of Are we witnessing the demise of the risk register (and the rise of risk visualisation)?
He says, “I loathe risk registers”.
So do, but for different reasons.
He loathes them because “they are boring, one dimensional and poorly prioritised lists that lack context and often serve to satisfy a requirement rather than a purpose”.
Now that’s true.
But I loathe them because they are risk-centric and not objective-centric. They don’t help understand the likelihood of success: the achievement of objectives, the satisfactory completion of projects, and so on.
I do agree with him that staid reports can be replaced with far more interesting and useful visualizations.
I don’t know whether they still do this, but executives at SAP used to have a great … Continue reading “Risk visualization”
It’s not about risk management – it's about the achievement of objectives
I have said many times that it’s not about managing risks: it’s about managing the achievement of objectives.
It’s about being successful.
Success is measured through the achievement of specified objectives.
We improve the likelihood and extent of success if we understand what might happen, both good and bad, as we strive to achieve our objectives.
The “what might happen” is risk, but the focus should not be on managing them individually but on being successful – taking the right level of the right risks.
The CRO (or equivalent) should be concerned with helping leadership run the organization and achieve its objectives, rather than helping them manage a list of risks.
Let me explain what I mean with a hypothetical story.
The executive team has come to the point in their monthly meeting where they review the report of the Chief Risk Officer.
The CEO invites the CRO to join … Continue reading “It’s not about risk management – it's about the achievement of objectives”
How should you assess the effectiveness of risk management?
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