Let me overstate the obvious. Risk management is about managing risk. But if it is so obvious, why do many risk management professionals focus primarily on the assessment side of the equation?
Perhaps they are treating it as a project, as opposed to implementing an ongoing process. It could result because the consulting resources engaged to help with the up front risk identification and assessment often don't participate in the follow-on risk treatments. Or finally it could result from the challenge of harnessing the necessary internal resources to treat risks thoroughly.
Remember that all the work that leads up to the risk treatment phase, albeit important, is only providing you with business insights which you will use to prioritize your risks. Schedule the appropriate time and resources to develop and execute your risk treatments. Only once your risks are addressed will you derive the desired link between risk management and corporate performance.
[Rich]
richard.m.wilson@ca.pwc.com
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About The Author
- Richard Wilson
- Richard is a Director in PwC's Risk Advisory practice with clients in both Canada and the United States.
He is an experienced senior executive with 15 years in a CEO or COO role (publically traded and private firms). Richard has been leading risk management implementations for more than a decade incl. 60 C-level risk assessments, and has led online risk assessments for 30,000 people in 25 countries.
He has advised the largest company in the US on risk management, and he has facilitated a risk assessment for the United Nations. Richard has been published in Compliance Week, Canadian Business, and the Globe & Mail and has been a keynote speaker on the topic of risk at many conferences in both Canada and the US since 2004.
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