Before you cook a meal you should consider who is dining with you and how much food will be sufficient. Some people have a higher capacity to eat than others, and sometimes one or more will be hungry – will have a higher appetite. It’s the same in business. Before determining your appetite for risk,
Another topic request from a reader: What impact does the risk maturity level have on the effectiveness of risk management? Like so many things in life, it depends. Start with your definition of risk maturity. When I run the RMIA’s Flagship ERM course, I run an exercise on how you evaluate your framework. There are
Last week I blogged about Overstepping the 3 Lines, where I highlight the biggest criticism of the Three Lines Model, (my opinion and that of many practitioners), it does nothing to build TRUST between the Risk Team as advisers to the business and those making the decisions to take risk. Unfortunately, it is the model
Early this year I asked readers of my blog what they would like me to blog about this year. Some asked about the Three Lines Model, which for those not in the know, refers to a risk management operating model that is the brainchild of the Institute of Internal Auditors. Line 1 is the business. Line
Does your management team fully understand the principles and the main mechanics of managing risk? Last week I wrote about better business practice and the use of simple business language to communicate what is actually good risk management. In 2024 you could ask; Do we really have to dumb down our language? Should business leaders