Is it because the highly paid and experienced Boards or Senior Executives running major businesses in a turbulent and competitive environment ignorant to risks? Or is it possible, the risk profession trying to influence decision making using fingers in the air risk assessment techniques, the ones that are getting it wrong?
If risk management is about decision making, how can we expect senior stakeholders to take decisions when presented with nothing more than anecdotes and subjective assessments? Quantitative approaches using black box techniques to quantify risks including intangibles like reputation, customer service or cyber damage isn’t much better.
Simplicity, trust and pragmatism is what is needed. Leaders need to make decisions and can cope with uncertainty, they simply need to understand the situational narrative and see as much trusted data as we’ve got. The subjective risk assessments are simply a quick prioritisation exercise so we know we’re talking about the right topics, it’s still necessary but not the main event.
The GOAT Toolkit™ in an e-learning course with useful downloadable slides, tools and templates that will empower learners to build on existing knowledge and evolve common risk practices into a data-led risk management programme and unlock the Boardroom.
See course details at: https://www.goatrisksolutions.com/rm-toolkit/, LinkedIn users can get a 10% discount by using voucher code LINKEDIN10Find out more about GOAT Risk™