Appetite is the “A” word. For many it is a vexed issue (see last week’s blog on the benefits of a Risk Appetite Statement). Operationalisation is the process of translating the board and executive’s appetite for doing business. As is the preference of some, it will be through financial delegations and rates of return on
Unfortunately, I am still often talking to executives or board members who are skeptical about the value of documenting their risk appetite. I point out to them that in the absence of a properly thought through and compiled risk appetite statement, all you have is an implied level of suitable risk taking. And that employees
Last week I promised you an example of my Pathfinder Model in action. I’ll do better than that, here’s a link to three examples in Chapter 8 in my book Persuasive Advising: How to Turn Red Tape into Blue Ribbon. One describes a scenario for a risk professional, another for a finance professional and another
Taxes are a necessary burden. However, many risk professionals carry an unnecessary burden that is withholding them. The burden of silence. For any staff member to call something out, or even to voice disagreement with senior leaders, they need to feel psychologically safe to do so. Including risk professionals. However, being in the position of having to
Short on time? Go to the end to find out what “rewarding risk” is all about. I’m blogging on accountability at the top for risk. Last week I led off with the story of Val King and her experience of risk appetite being an avenue to increase accountability for risk at all levels of the