There Is No Viable Alternative To
Integrated Risk Management

The opportunities and threats posed by disruptive forces and events create or eliminate long-term value. Opportunity and risk are two sides of the same coin. Enhancing adaptive governance enables boards to provide more impactful guidance and transform uncertainty into a sustainable advantage.

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There Is No Viable Alternative To
Integrated Risk Management

The opportunities and threats posed by disruptive forces and events create or eliminate long-term value. Opportunity and risk are two sides of the same coin. Enhancing adaptive governance enables boards to provide more impactful guidance and transform uncertainty into a sustainable advantage.

LEARN MORE

There are risks and costs to action. But they are far less than the long-range risks of comfortable inaction.

John F. Kennedy

We cannot change what we are not aware of, and once we are aware, we cannot help but change.

Sheryl Sandberg

Over time, there is only one alternative to risk management, and that is crisis management, and crisis management is much more costly, time consuming and embarrassing.

James Lam

The pace of change is so great; there is always something else going on. What that says to me is that you have to have strategic vision and peripheral vision. Strategic vision is the ability to look ahead and peripheral vision is the ability to look around, and both are important.

Carly Fiorina

You can never protect yourself 100%. What you do is protect yourself as much as possible and mitigate risk to an acceptable degree. You can never remove all risk.

Kevin Mitnick

Prepare for the unknown by studying how others in the past have coped with the unforeseeable and the unpredictable.

George S. Patton

All events in your life are neutral until you label them. Nothing has meaning until you give it meaning.

Michael O’Brien

Considerations When Developing A Healthy Risk Appetite

Do you want to…

  • Increase the accuracy of identifying risks that have a significant, severe, and often sudden effect on your organization’s revenue, profitability, competitive position, or reputation.
  • Mitigate the impact of risks that could change your industry’s structure or operating conditions, make existing business models obsolete, derail growth, or otherwise pose a fundamental threat to the long-term strategy of the organization.
  • Gain insight and advance notification of non-linear trigger events or risk thresholds in business, regulatory, or social environments that could significantly change the nature or magnitude of known risks or create new risks.
  • Identify risk drivers that are interconnected, in patterns not previously seen that can lead to risk ‘contagion’ with one risk area amplifying others or causing new risk to occur elsewhere.
  • Quantify the financial impact of specific risk scenarios as part of a more sophisticated risk management strategy that more effectively prioritizes resource expenditures.
  • Eliminate the systemic creation of risk blind spots caused by significantly underestimating the importance of specific threats.
    Avoid underinvesting in the activities and technologies that support real innovation.

Could additional value be created by…

  • Establishing and maintaining a boardroom culture that sets the appropriate ‘tone at the top’ increasing risk and disruptive event awareness to minimize disruptive risk blind spots.
  • Conducting organizational and board capability assessments identifying any potential gaps and/or sources of cognitive biases that could impact the organization’s response to disruptive events.
  • Verifying critical skillsets are fit for purpose and meet the anticipated needs of a rapidly evolving business environment.
  • Creating a risk dashboard with meaningful metrics that quantify financial and residual risks embedded in strategic programs, growth initiatives, supply chains, software, and network assets.
  • Analyzing independent data about the organization organized in a way that avoids information overload but is not overly filtered by management – and becomes a core component of enterprise risk reports.
  • Allocating appropriate time on the board’s agenda to discuss potential disruptive risks and their effect on long-term strategy and value creation.
  • Improving organizational resiliency and response capabilities by facilitating a well-informed discussion of potential risks, their impact on strategy, and value creation.
  • Creating a robust simulation and testing program designed to ‘trust but verify’ operational continuity of critical business processes and effective protection of key assets.
  • Working with a third party to facilitate substantive discussions of scenario plans, simulations, and stress testing exercises.

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can become Risk Neutral

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