Business must take risk. It depends upon ability to take risk in order to survive, thrive, innovate, adapt, grasp new opportunities, and succeed.
Accordingly, annual appraisals, performance targets, stakeholder bonuses, are all determined by the degree to which benefits are delivered to the organisation. And yet large parts of our profession are obsessed not with delivering benefit but with the notion that some mysterious RoI can be delivered by preventing bad things from happening. In doing so, we present a distorted misunderstanding of Business value that conveys an extraordinary lack of ambition. No wonder stakeholders are reluctant to buy-in.
A Risk Management Framework is meant to provide valuable input to inform Business decisions. But let’s face it, in reality it is rather difficult to stare into a crystal ball to predict the consequences and likelihood of future events, positive or negative.
So, how can we make The Business of Risk meaningful, credible, and clearly understood? How do we provide accurate Risk Context for decision making that balances the likelihood of loss with the possibility of gain? How do we determine clear, transparent, and obvious risk authority and ownership such that it is welcomed and endorsed rather than avoided? And how do we communicate risk about what really matters, to whom it matters, in a relatable and instinctive language?
Download the slides from this webinar by our CEO and SABSA co-author David Lynas.