Informed Risk Taking : Risk Management Process - Analysis

Risk Management Strategies : Risk Analysis Techniques : Risk Management Principles : Risk Management Process : Methods

What you'll learn

Help you focus on risk management 2 and learn practical steps to integrate risk management into decision making and key business processes

Be able to assess the risk management process maturity of your organization

Be able to develop a plan for risk management integration into key business activities and decision making

Be able to integrate risk management principles in key decisions and business proceses

Requirements

Basic understanding of corporate finance

Basic understanding of statistics

Basic understanding of decision science

Description

Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!This course is not about doing risk assessments, building risk registers, heat maps or risk reports. None of these things have anything to do with proper risk management. This is what I call risk management 1 – risk management for external stakeholders (Board, auditors, regulators, government, credit rating agencies, insurance companies and banks). This course is about alternative, different take on risk management, it's about risk management 2 – risk management for the decision makers inside the company. If there is one thing I learned in my previous role as Head of Risk of a multibillion-dollar sovereign investment fund, risk management is not about managing risks. It’s about helping management make strategic, operational and investment decisions with the risks in mind.It sounds simple enough, but it’s anything but. Here are some of the lessons I had to learn the hard way:A. Thinking about risks is not naturalB. Individual and corporate risks are not the sameC. Business decisions happen every day, not once a quarterD. Integrating into business processes means knocking on people’s doorsOver the years, risk managers have tried various ways to get the business units to participate in the risk management process. Some simplified the risk identification and assessment methodologies, others complicated them. The result in both cases was the same – disappointment. Best case scenario – annual or quarterly risk assessments were perceived as a necessary evil with most employees ignoring them and few actively resisting.Did it for example ever strike you as odd, that risk management is supposed to be a support function, yet business units are constantly required to provide the information to the risk managers and not the other way around? It almost feels like the business is there to support risk managers in doing their job.Maybe, just maybe, it is time for the risk managers to stop living in a universe, where the business is regularly required to provide information, participate in risk assessments and to contribute to lengthy discussions about risk mitigation. After all, this does not make business sense. Why would business units take the time away from making money to supply risk managers with all this information? The only logical answer is because they must, it’s a compliance issue. And this is where it gets interesting, risk managers have for years been telling us that it’s not about compliance, it’s about generating business value. Something doesn’t add up. If an activity takes time and resources and doesn’t have an immediate impact on business decisions or business processes, something is clearly wrong.Join me to discover how to integrate risk management principles into day to day decisions, change how investments are done, change how strategy and budgets are set and change the very culture of the organization. BONUS: - 4 future trends - How to integrate risk management into strategic planning- How to integrate risk management into decision making #managerisk #riskmanagement #riskanalysis #decisionmaking #riskacademy #iso31000 #cosoerm #erm #risk

Overview

Section 1: Risk Management - INTRODUCTION

Lecture 1 Risk Management - Welcome

Lecture 2 If I was do describe this course in one sentence

Section 2: OBJECTIVE 1. DRIVE RISK CULTURE

Lecture 3 A. EVALUATE TO WHAT EXTENT THE COMPANY'S STRATEGY@RISK

Lecture 4 A1. Understand what management appetite for change is

Lecture 5 A2. Start by selecting the overall framework and documenting legal requirements

Lecture 6 A3. Document legal requirements for risk management

Lecture 7 A4. Assess the effect of uncertainty on strategic objectives

Lecture 8 A4.1 STEP 1 - STRATEGIC OBJECTIVES DECOMPOSITION

Lecture 9 A4.2 STEP 2 - IDENTIFYING FACTORS, ASSOCIATED WITH UNCERTAINTY

Lecture 10 A4.3 STEP 3 - PERFORMING RISK ANALYSIS

Lecture 11 A4.4 STEP 4 - TURNING RISK ANALYSIS INTO ACTIONS

Lecture 12 B1. Develop a high-level Risk Management Policy

Lecture 13 B2. Document risk appetite for different types of decisions

Lecture 14 B3. Include risk items on Board’s agenda

Lecture 15 B4. Consider establishing a Risk Management Committee at the management level

Lecture 16 B5. Promote risk management within and outside the compan

Lecture 17 B6. Reinforce the "no blame" culture

Lecture 18 B7. Join forces with the managers responsible for other areas

Lecture 19 B8. Find the right sponsors

Lecture 20 C1. Select the risk governance model that suits maturity level

Lecture 21 C2. Include risk management roles and responsibilities into existing documents

Lecture 22 C3. Update existing policies and procedures to include elements of risk

Lecture 23 C4. Regularly evaluate risk management culture

Lecture 24 C5. Include risk management KPIs into individual performance reviews

Lecture 25 D. CREATE A NETWORK OF “RISK-CHAMPIONS”

Lecture 26 E1. Include the principles of risk-based decision-making in induction training

Lecture 27 E2. Conduct training for senior management and the Board

Lecture 28 E3. Conduct training for "risk-champions"

Lecture 29 E4. Make risk training competency based

Lecture 30 E5. Develop in-house certification for employees in high risk activities

Lecture 31 E6. Use gamification and passive learning techniques

Lecture 32 F. KEEP IT SIMPLE

Section 3: OBJECTIVE 2: HELP INTEGRATE RISK MANAGEMENT INTO BUSINESS

Lecture 33 G. HELP EMPLOYEES INTEGRATE RISK ANALYSIS INTO THEIR WORK

Lecture 34 H. RISK-BASED STRATEGIC PLANNING, BUDGETING AND PERFORMANCE MANAGEMENT

Lecture 35 H1. Integration into strategic planning

Lecture 36 H2. Integration into budgeting

Lecture 37 H3. Integration into performance management

Lecture 38 H4. Integration into decision making

Lecture 39 I1. Speak the business language

Lecture 40 I2. Include risk information in the company's external communication

Lecture 41 I3. Include risk information into existing internal communication channels

Lecture 42 I4. Create simple risk escalation mechanisms

Section 4: OBJECTIVE 3: BECOME A TRUSTED ADVISOR

Lecture 43 J. VALIDATE MANAGEMENT ASSUMPTIONS

Lecture 44 K. INFORM MANAGEMENT ABOUT EMERGING RISKS

Lecture 45 L. PROMOTE RISK MANAGEMENT AS A SERVICE

Lecture 46 M. TAKE OWNERSHIP OVER SOME RISK ASSESSMENTS

Lecture 47 N. BUILD YOUR OWN NETWORK OF RISK ADVISORS

Lecture 48 O. CONTINUOUSLY IMPROVE YOUR OWN RISK MANAGEMENT SKILLS

Section 5: KNOWLEDGE TEST

Section 6: OBJECTIVE 4: RISK MANAGEMENT 1 AND RISK MANAGEMENT 2

Lecture 49 What is risk management 1?

Lecture 50 What is risk management 2?

Lecture 51 Prioritising risk management 1 and risk management 2

Lecture 52 Risk management 1 vs risk management 2

Section 7: OBJECTIVE 5: SAVE TIME

Lecture 53 Why risk managers need to reprioritise their efforts

Lecture 54 Save time on quarterly risk assessments

Lecture 55 Save time on developing risk criteria

Lecture 56 Save time on risk appetite statements

Section 8: PRACTICAL EXERCISE: ROADMAP

Section 9: BONUS MATERIAL

Lecture 57 BONUS: 4 future trends in risk management

Lecture 58 BONUS: Integrating risk into strategic planning

Lecture 59 BONUS: Integrating risk into decision making

Lecture 60 BONUS: Interview with Gareth Byatt

Lecture 61 BONUS: Interview with Hans Laessoe

Risk managers and internal auditors,Decision makers,Intependent directors and Board members,Risk management students