I love using this example of why you need to agree, and to operationalise, risk appetite for staff – to align the poles so to speak. It is not a corporate example. It is from every day living. Well not quite every day, but you will get the gist. I was “up the coast” one summer. A
Your staff come to work and bring their best selves (mostly). However, each ‘best self’ can have a different appetite for risk taking. If you haven’t already, survey their attitude to risk to their personal safety or their personal financial risk. Here in lies the need for them to understand the organisation’s appetite for risk
Sorry. No such thing when it comes to Change Programs like implementing your risk framework. Ask any professional change manager. And they don’t teach a lot of change management at risk school, do they? Haha! What risk school? Most risk people get technical training. Few, as I have pointed out before in my blog, We must
Kill the Three Lines Model and adopt what I call the Tri-Partite Model of Risk! In a nutshell, the essence of T-PM is: Business decision makers are wholly accountable for the decisions they make. The risk function is only responsible for providing advice but is wholly accountable for the quality of that advice. And the assurance function is wholly accountable for assessing the effectiveness of the two working
I like to think that when I work with boards, executive teams and other teams that they are buying an experience, as much as my knowledge of the topic at hand. That is, they feel engaged. Last week I emphasised the need to design great risk frameworks. The next bit of advice I give in Chapter