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
- there is insufficient effort towards the implementation and monitoring of risk mitigation strategies to show progress towards risk reduction and acceptance.
Review of risk data will show nothing has changed leading to risk fatigue.
In a dynamic risk environment, an integral component of the risk identification activity is the consideration and inclusion of emerging risks. Never has this been more important given the challenges confronting organisations over the past couple of years.
Riskcom has developed proven techniques and tools to enhance the task of capturing emerging risks – and its 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 plus months.
This approach not only ensures 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 often lead to tunnel vision and an attitude of ‘here we go again’, which we want to avoid in developing a positive risk culture.
Take the step from routine to emerging
Once these potential impacts have been identified, it not only ensures that the ensuing risk identification activity is comprehensive and captures any emerging risk events that can impact strategy, but it also has the ‘buy in’ of senior leadership.
Riskcom has effectively used these techniques with a range of organisations, ensuring their risk identification task is comprehensive and adds real value.
Undertaking a Riskcom workshop with Michael MacLennan (Director – Strategic Risk Management) enabled WDEA Works to think about risks to our operating environment in a new way. The workshop helped us to reframe risk identification and to look at risks that we hadn’t previously considered. Knowing we have considered all risks, filled us with confidence as we moved forward with the next steps in planning.
Mark Koch, Director of Strategy and Commercial Services, WDEA Works
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 1,000 plus risk workshops with boards, executive teams and operational groups, gives us great confidence that we can successfully work with you and add value to your identification and mitigation processes.
www.riskcom.com.au or ph: 03 9415 1987
