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”
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?”
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”
Risk Management is good, so the more risk management, the better, right?
The key to effective risk management is to use it intelligently, with the understanding that risk is inherent in everything we do. There can be no opportunity without risk. We have all experienced how ridiculous and frustrating it can be when faced with too much risk management.
This example might sound familiar to some: Continue reading “Too much risk management kills innovation”