While still (and understandably) approaching risk from a discernibly insurance -centric perspective, it’s refreshing to see our colleagues at the Insurance Bureau of Canada embracing a more holistic approach to Risk Management.
As I wrote in a previous article, Risk Management is NOT insurance. It remains, however, a vitally important risk financing tool. Along with other strategies, it can mitigate the negative effects of a loss by paying for many of the associated costs, and keeping you in business. Continue reading “Insurance Bureau of Canada embraces Risk Management”
Now before insurance people get too excited, let me say that insurance is usually a very important part of an overall strategy of risk management. Insurance, however, is only one of a suite of treatment options available to organizations wanting to manage the uncertainty associated with achieving their goals and objectives. You might say insurance is part of risk management, but risk management is a whole lot more than insurance. Continue reading “Risk management is NOT insurance”
If your business contracts for goods or services, you have risks. It’s good risk management to ensure your contracts include clauses requiring your suppliers and service providers carry insurance that will extend protection to you in the case their actions, or lack thereof, cause you a loss.
Continue reading “Insist your suppliers and service providers are insured”
There are many good reasons to bring in an external risk management consultant to help ensure your business’s success. Here’s my top 5.
Continue reading “Top 5 reasons for hiring an outside risk management consultant.”
I’ve been called to facilitate risk assessments for organizations varying from project teams to corporate boards of directors. Surprisingly, I still occasionally find the risk assessment to be the first time the key stakeholders have come together to discuss their goals and objectives in a critical way and to form a common understanding for how comfortable they are with uncertainty; what is their risk tolerance?
Continue reading “Fear, trust and risk tolerance”
Risk management and auditing are related in that they seek to optimize the performance of an organization. In fact, risk management is often housed within the internal audit and compliance division of many corporations.
Risk management can very effectively support auditors by providing a framework for risk-based audit planning. Continue reading “A framework for risk-based audit planning”
Sometimes, when managing risk, we need to be creative – and have a bit of fun. Sometimes, there just isn’t enough past history to be able to analyze risk effectively – and high-impact, low-likelihood risks are a good example. But what about multiple high-impact, low-likelihood risks happening at the same time?
Clearly, a completely different approach is required.
Continue reading “Zombies, aliens, evil robots…and risk management?”
During a particularly dark day during the War for the Liberation of Kuwait, I was on patrol in the desert. In the distance I saw a small black spec, being followed by a trail of dust.
As I drew closer, I realized it was a truck. It stopped, a little man got out, opened up the side of his canteen truck, and offered me one of the most valuable gifts I ever received: a cup of lukewarm coffee and a two-week old newspaper. Continue reading “The real value of a cup of coffee and a newspaper”
Risk management can be easy, but it requires disciplined thinking. Start with your business plan. This is where your Mission, Goals and Objectives are clearly identified. It outlines your strategies and priorities for achieving your goals and provides objective benchmarks for measuring your success.
Don’t have a business plan? You need one. Continue reading “Why you need a business plan”
When risk management was in its infancy, it was firmly rooted in the financial sector. Investment banks advised their clients on financial and market risks, and referred them to insurance brokers to cover the rest.
That was risk management in a nutshell. Continue reading “From banking to business”