We have observed over many years that corporate and operational risk programs can become stale. They lack the commitment of risk owners and leadership teams for a range of reasons, including:

• the same risks are repeatedly reviewed; and
• there is insufficient effort towards the implementation and monitoring of risk mitigation strategies to show progress towards risk reduction and acceptance.

A review of risk data will show nothing has changed which can lead to risk fatigue.

In a dynamic risk environment, an integral component of the risk identification activity is the consideration and inclusion of emerging risks.

Riskcom has developed techniques and tools to help enhance the task of capturing emerging risks – and it starts with a facilitated discussion that doesn’t even mention ‘risk’.

Work teams are asked to consider various elements of the:

• external business environment (e.g., legal, political, social, technological, economic, stakeholders)
• internal operating environment (e.g., operational plans, human resource policies, IT, finance)

to determine if corporate objectives are likely to be impacted by any of these elements in the upcoming 12+ months.

This approach helps to ensure any emerging impacts are critically linked to strategy, but also encourages people to think more broadly and almost creatively – beyond an existing list of the same old ‘routine’ risks.

To start the conversation with ‘risk’ can sometimes lead to tunnel vision and an attitude of ‘here we go again’, which we want to avoid in developing a positive risk culture.

Identifying these potential impacts can help ensure that the risk identification activity has captured any emerging risk events that may impact strategy.

Riskcom has effectively used these techniques with a range of organisations to help ensure their risk identification task adds real value.

If you would like to discuss how to ‘take the next step’ and develop a more dynamic risk environment, please contact us. Our significant experience and skills gained from facilitating over 1,000 risk workshops with boards, executive teams and operational groups gives us confidence that we can work with you and add value to your identification and mitigation processes.

 

Important Note: the general information contained in this article does not take into your specific objectives, financial situations or needs.

Riskcom Pty Ltd ABN 72 612 554 926