Execution of Risk Strategy

First Post so here goes:

Today, virtally every Risk consulting / advisory / company in the world offers a slightly unique but ultimately similar perspective on overall Enterprise Risk Strategy. The question is, if you decide to go down that path, adopt an Entperprise Risk Strategy and framework possibly moving accountabilities between 1st, 2nd and 3rd line risk teams, how do you succesfully transition and implement this? Any thoughts? What are some key risks and issues, challenges, opportunities to ensuring success? Theres never any magic bullets but the combintion of many good practices will delivera great outcome.......

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  • Thanks Bryan - great points.

    Well on the way with several of them but definitley will take some others on board.........will let you know how we go over the next few months!

     

    Cheers!

     

    Phil

  • HI Phil, my tips for what they are worth:

    - Paint a picture - make sure you can show and explain what the end game looks like (to top management and staff)

    - Draw the journey - let them know they are on a journey, describe it and let them know where they are right now

    - Low hanging fruit - Don't try and win everyone over at once.  Get going with those most likely to want it.

    - Risk champions - make sure you have some kind of risk champions committee - not THE risk committee but a committee of managers that are working with you on both the reporting on risk to the top and on making sure the risk framework is right for them and you.

    - On the job training - risk management is best learned on the job.  Make sure whatever training you give is highly practical.  Make it as short as possible as well so you maximise attendance.  Win them over and you have more opportunity build what you wish to build.

    - Simplicity - although it is not simple, you need to make it as uncomplicated as you can.  Try to use business rather than risk terminology wherever you can and modify existing processes and systems rather than create new ones.

    - Climb the mountain - Generally the CEO/Board are not low hanging fruit.  Work up to them.  Yes by all means engage them early (with the picture and the drawing above) so they buy in but your ultimate goal is to WIN THEM OVER to your way of thinking so they are true believers.  That takes finesse and some "points on the board" with all of the above.

     

    Hope you find is helpful.

     

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