What do you do if your risk management strategies need a boost?

Firstly, revisit the existing risk management policies and procedures and assess whether it is up to date. Thereafter, ensure the periodic cycle for updating those documents is adequate to the level of risk in scope of those policies and procedures. Secondly, revisit the risk assessment process, including the control process for identifying the intrinsic risks, control environment and residual risks, ensure the check and challenge process is adequately captured within the control environment.

If Risk Management performance needs a reboot within the existing Risk Management framework, we can follow the steps: a) Review the existing performance of the Risk Management framework through a risk refresh and evaluation of Key Risk Indicators defined at the Executive Leadership Team level. b) Subsequently, risk refresh outcomes coupled with experiential learnings could be communicated across the organization ecosystem with a renewed and fresh communication perspectives. c) Lastly, role of risk practitioners in evaluating the business plan and organization growth objectives in accordance with risk appetite shall further strengthen the risk management outcomes.

Review or Develop a formal Risk Assessment Process Engage Risk Owners Formalize Risk Classification Process Get Buy-in on the Process Revisit the Risk Register and ensure all the right ingredients are included (category, likelihood, owner, description, identification process, etc.)

Risk assessment end to end process and procedures need to be thoroughly reviewed regularly to ensure it stays updated and relevant to the dynamic risk environment. Further it needs to be tested on all risk parameters - market, economic, business, regulatory, financial, conditional, technical, industry, social, reputation etc. Upon its testing any shortcomings found or gaps needs to be identified, corrected and retested to make entire process robust and accordingly risk controls needs to be incorporated leading to efficient risk management and outcomes.

When your risk management strategy needs a revitalization, it's time to take decisive action. Start by questioning the status quo—don’t just identify risks, actively pursue them. Encourage your team to think like innovators, not just managers. Leverage data as a strategic asset, but don’t let it limit your vision. Bring in fresh perspectives, even if they challenge conventional thinking. Lead by example: show that taking calculated risks is essential for growth. In a rapidly evolving world, your strategy must be dynamic and agile. Leadership is about embracing change, not just managing it. Adapt, innovate, and lead with confidence.

It's very critical to not only identify & assess risks, but to create complete awareness about the possible risks with all stakeholders to create acceptance, understanding, and also resilient and robust eco system which ensures internal systems and verticals completely aligned to work in tandem to mitigate the risks and make the organisation immune to same. Few effective ways of doing same is conducting joint workshop, sharing all possible the risk scenarios, simulated outcomes of risk are not motivated, key learnings from practical situations of past, doing market benchmarking with compatitive performances.

Para fortalecer las estrategias de gestión de riesgos es mejorar la comunicación con los stakeholders. Una comunicación efectiva sobre riesgos ayudará a construir confianza, aumentar la conciencia y alinear expectativas. Para lograrlo, podemos utiliza un lenguaje claro, adapta los mensajes a tu audiencia (tipo de público), emplea diversos canales y evalúa el impacto de tu comunicación. Una comunicación deficiente puede generar desconfianza y malentendidos, mientras que una comunicación transparente y clara puede mejorar la percepción de la gestión de riesgos de la organización.

One size does not fit all. Always remember this adage. The communication strategy built around effective risk management needs to be tailored to suit different audiences. While the message remains the same, varying approaches are required to elicit trust and garner support.

Para mejorar la comunicación de riesgos, recomendaría lo siguiente: Utilizar un lenguaje claro y coherente: Evita jergas técnicas y utiliza un lenguaje sencillo y comprensible para transmitir los riesgos de manera efectiva. Adaptar los mensajes a la audiencia: Asegúrate de ajustar el nivel de detalle y la complejidad de la información según el conocimiento y las necesidades de tu audiencia. Supervisar y evaluar el impacto de la comunicación: Implementa un sistema para recopilar retroalimentación sobre la calidad y la utilidad de la comunicación de riesgos, y utiliza esta información para realizar ajustes y mejoras continuas. Promover una cultura abierta de comunicación.

Strengthening communication with stakeholders is crucial for effective risk management. In my experience, we found that transparent and clear communication helped build trust and ensured everyone understood the potential risks involved. We regularly shared updates on risk assessments, mitigation plans, and any changes in the risk landscape. This proactive approach encouraged collaboration and allowed stakeholders to provide valuable input. By enhancing risk communication, we fostered a culture of awareness and accountability, which ultimately strengthened our overall risk management strategies.

Sometimes the risk that is being managed doesn't exist anymore. It is important to review the risk and check the relevance to the current situation. External help may be a good idea in most cases as the internal resources may have a company culture and cluttwith skitomas.

Root cause analysis helps identify what went wrong and how the risk event can be mitigated going forward. Sharing the lessons learned with staff ensures they learn how to manage such risks going forward.

Reflecting on past experiences is key to refining risk management strategies. We made it a habit to analyze both successful risk mitigations and any instances where things didn't go as planned. By understanding what worked well and what didn't, we could identify patterns and lessons learned. This process enabled us to adapt and improve our approach over time, making our risk management strategies more effective and resilient. So, embracing the lessons from both positive and negative experiences is essential for continuous growth and enhancement in risk management.

You should have contingencies upon contingencies, especially of you operate in an environment with a high risk appetite. Understand that you can not mitigate against all risks, and so you should have strategies you can quickly deploy should certain events occur. Having more than one alternative for different risk profiles allows you the luxury of choosing one that fits the challenge.

Identify the most relevant opportunities and align your efforts with the strategic objectives of your organization. This will allow you to focus on the areas where the potential for growth and improvement is greatest.

When it comes to elevating risk management strategies, exploring various alternatives is paramount. We always ensured to brainstorm different options and scenarios for handling risks. This approach helped us anticipate potential outcomes and prepare contingency plans accordingly. By considering a range of alternatives, we could make more informed decisions and adapt swiftly to changing circumstances. Whether it was through simulations, scenario planning, or simply brainstorming sessions, exploring risk alternatives allowed us to be more proactive and agile in managing risks effectively.

Nothing stays forever. A continued proactive approach has to be adopted to ensure all evolving and emerging risks are understood and identified in time.

You can never know too much. Be open to learning and develop a community of like-minded professionals whom you can share strategies and solutions that have traction. Be open to sharing what you come up with within these networks as well.

Keeping a close eye on the risk environment is vital for refining risk management strategies. We made it a priority to regularly monitor both external and internal factors that could impact our risks and mitigation efforts. This involved staying updated on industry trends, regulatory changes, market conditions, and internal operations. By understanding the evolving risk landscape, we could identify emerging threats and opportunities early on. This proactive monitoring enabled us to adjust our risk management approach accordingly, ensuring we stayed ahead of potential challenges and capitalized on favorable conditions.

Make necessary changes to the risk appetite in case of any changes. This will surely benefit the overall approach. I have seen real time examples and benefits.

Risk isn’t about conservativeness or negativa. It is the balance of opportunity cost (growth) versus probability of losses. When imagined with that lens, risk performance will constantly help identify new revenue stream, hitherto invisible include crises that hit the business. Thus, culturally risk can be bent for growth mindset.

Assessing risk performance is the ultimate step in enhancing risk management strategies. We regularly evaluated how effectively we were managing risks and whether we were meeting our risk management objectives. This involved analyzing key performance indicators, such as risk exposure, mitigation effectiveness, and overall risk impact. By measuring our risk performance, we could identify areas of strength and areas needing improvement. This feedback loop allowed us to continuously refine our approach and ensure alignment with organizational goals. Ultimately, evaluating risk performance was essential for demonstrating the value of our risk management efforts and driving continuous improvement.

Es útil reconocer que evaluar el desempeño de los riesgos es un paso crucial para mejorar nuestras estrategias de gestión del risk. En realidad, no estoy de acuerdo con la idea de abordar este proceso de manera casual o no estructurada (un tipo de problema que abordan los directivos según IESE), ya que podría conducir a resultados incompletos o poco significativos. Un ejemplo que he visto es cuando una empresa omitió evaluar su desempeño en riesgos después de implementar nuevas medidas de gestión, lo que resultó en una falta de comprensión sobre la efectividad de dichas medidas y en la persistencia de riesgos no abordados adecuadamente.

Build internal trust in your organization where people actively support a culture of risk management. This is critical and requires consistancy and encouragement. Incentivise positive behaviour for identification, mitigation and prevention across all roles and levels. Case manage adverse occurrences to facilitate detailed understanding and team proposals for remedial strategies.

Here are some steps to revitalize your risk management approach. Invest in Training: Provide comprehensive training programs to equip employees with the knowledge and skills needed to identify, assess, and mitigate risks effectively. Leverage Technology: Embrace technological solutions such as risk management software to streamline processes, enhance data analysis, and improve decision-making. Conduct Scenario Planning: Anticipate potential scenarios and develop contingency plans to mitigate the impact of unforeseen events on your business operations. Continuous Improvement: Establish a culture of continuous improvement by regularly evaluating the effectiveness of your risk management strategies and implementing necessary adjustments.

To suggest risk improvement measures which will benefit in Risk reduction. Risk improvement measures should be reasonably practical.

Em circunstâncias assim, provavelmente a forma como a gestão de riscos está sendo conduzida não permite o apoio à tomada de decisão por parte da alta administração. O ERM pode estar sendo considerado apenas como um item de check list regulatório e não como prevenção real das ameaças ao alcance dos objetivos estratégicos. É preciso sempre compatibilizar a relação entre o desempenho e o risco (Perfil de Risco) a fim de que a estratégia de risco alcance mais credibilidade.