That’s what I do as I present the risk appetite methodology agreed with management to the board. It’s always one of those moments. It lands and they love it or…
The more I’ve pondered, the more I’ve come to realise that the organisation’s maturity level, along with the board’s extensive experience in risk management and related fields, is the critical factor. The less mature, the simpler it all has to be.
I talk about creating false and fluffy statements that damage culture, because staff can smell the foul odour from down the hall. The next level is bland and convenient where nothing changes except the hip pocket of the consultant if you used one. The harder path is something genuine and enduring that will help build a stronger culture.
If it was easy, everyone would get it done. It’s hard. I just had another experience of the board clawing their way back towards bland and convenient. There were extenuating circumstances but it was already proving difficult. Hence my reflection on the maturity and experience of organisations and those that govern them.
Don’t steer away from genuine and enduring. But accept your teeth may chatter – and hopefully you will break into a smile. But be prepared to pivot and take a longer path towards the goal of better, faster decision making within an agreed appetite for risk!
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