Exploring the junctions of Risk Management and Decision Making #RAW2022

Risk management practitioners often struggle with their role and contribution to decision making. Clearly, an organization needs to fend off mishaps and mitigate events that might compromise its ability to achieve its objectives. The traditional domain of risk management, avoiding mishaps with negative impact, is only one side of the coin. Pursuing opportunities with a positive contribution is also critical for success. So how can risk management enhance its role and contribution to decision making?

In this workshop we will wander a little through the landscapes of both risk management and decision science. We will touch on three crossroads of typical risk management practice and the way organizations take decisions. We will present a structured way to prepare important decisions in which we make a distinction between the how (the process steps) and the what (all the things that need to be considered). Perhaps the most crucial process step is framing – identifying the issues in play. Here we arrive at the first intersection with risk management: risk identification. When we continue our journey, we find that incorporating risk in decision making is best facilitated by quantifying them to the extent sensible and possible. We will briefly discuss some techniques to do that at this second intersection between risk and decision analysis. Yet, we will also argue that despite our emphasis on (credible) quantification, we still see a useful role for the often-ridiculed risk matrix. Lastly, at the third crossroad we take a look at the concept of risk appetite from the risk management domain and how this relates to making trade-offs in the decision domain.

We recommend to risk managers to, within their organizations, explore these and other crossroads of risk management practice and decision making. Managing threats to objectives is one thing, taking risk through visionary decisions is another. Ultimately, a full merger of risk management and decision analysis approaches may be in order, but first steps can be made through better collaboration and integration at crucial junctions.

https://2022.riskawarenessweek.com/talks/exploring-the-junctions-of-risk-management-and-decision-making/

DIANA DEL BEL BELLUZ

For over 30 years I have helped leaders implement systematic and proactive risk management to enable their people to take the calculated risks necessary to stay competitive, innovate, and create value. I work with executives, boards of directors, and risk practitioners in the corporate, government, and not-for-profit sectors.

HENK KRIJNEN

Henk Krijnen has completed a career of 35 years with Shell which took him to Indonesia, Thailand, the United States and the Netherlands. During his last five years in Shell’s corporate strategy department he played a pivotal role in establishing new approaches for risk and scenario analysis within the company.

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Alex Sidorenko is an expert with over 15 years of private equity, sovereign wealth fund risk management experience across Australia, Russia, Poland and Kazakhstan. In 2014 Alex was named the Risk Manager of the Year by the Russian Risk Management Association.

YOUTUBE: <a href="https://www.youtube.com/channel/UCog9jkDZdiRps2w27MZ5Azg">https://www.youtube.com/channel/UCog9jkDZdiRps2w27MZ5Azg</a>
BLOG: <a href="https://riskacademy.wordpress.com">https://riskacademy.wordpress.com</a>

Alex specializes on integrating risk management into strategic and investment planning and decision making at venture capital, private equity, investment authorities and sovereign funds across the world. Alex worked as a Head of Risk Management at RUSNANO, one of the largest private equity funds in Russia, specializing in technology investment. Alex won an award for best ERM implementation at RUSNANO in 2014.

As a VP at Institute for strategic risk analysis in decision making, Alex is responsible for risk management consulting, training and certification across Russia and CIS. Alex is the co-author of the global PwC risk management methodology, the author of the risk management guidelines for SME (Russian standardization organization), risk management textbook (Russian Ministry of Finance), risk management guide (Australian Stock Exchange) and the award-winning training course on risk management (best risk education program 2013, 2014 and 2015).

In 2012 Alex created RISK-ACADEMY <a href="http://www.risk-academy.ru">www.risk-academy.ru</a> a web portal dedicated to risk management training across Russia and CIS. Since then RISK-ACADEMY became a global brand providing risk management services to some of the largest organizations in the world.

Alex recently published his second risk management book called “Effective Risk Management 2.0”. Alex also regularly presents at risk management conferences in the Middle East, Russia and Europe. In November 2012 Alex short a TV series dedicated to risk management in start-ups. Alex teaches risk management at major Russian business schools as well as corporate universities.

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