Creaci
June 6, 2010 by Project Manager
Filed under Risk Management
It n' is not accidental which currently très little d' organizations gèrent its risks adéquatement.
Typically, the enterprise-level risks that create the significant impacts for organizations are like icebergs are to large ships, very visible for a considerable time before they hit, with the majority of the risk not visible above the surface.
Whereas modern, large ships have generally developed substantial protective countermeasures to avoid icebergs, modern, large organizations seem to gravitate towards substantial enterprise-level risks with a frequency that suggests that nobody is on lookout.
In reality, the lookout tower of a typical organization is probably so full of lookouts that the problem is not so much detecting risk, as trying to decipher from the different lookouts what the overall value and meaning of each risk situation really is.
If you think about his own organizacià ³ n © Aqua risk type receives a follow-up?
Because each one of these tends to rely on different expertise, they are often managed in isolated silos.
If his organizace? ? ng? re risk in silos, imagine this sc? not in the boat, a lookout point is? speaking in a tone of good has been agreed in a large iceberg, another is? speaking of the possibility? intoxicaci? of? No food in the room? tripulaci eat? ? No, a third? me is? examining a storm can? t? in pr? ? ximos d? aces, while another reported a measure presi? of? n was d? plac?.
Without a common framework or measurement to interpret the lookout information, the news of the iceberg is confused with a heart-lifting story about a seal and the focus turns towards the relative danger of the onboard chef having selected blowfish as the main course in the canteen.
Part of the problème étendue is that its gestià  ³ N of various risks seldom (or never) l' obligacià  ³ N to communicate d' around; a framework comà ºn. This often is aggravé by l' d' absence; a list of the données qu' it wishes to compile on the risk. Artà culos like:
Some of your individual risk silos may collect data like this but the communication is in different formats and, frequently, in different meetings. Just to add further confusion sometimes a different side of the same risk gets reported from different silos.
There is an easy and profitable solution to get your risk experts talking to each other. If all risks have to gather similar data and can be made available in a single common framework – suddenly, the risks of significance are free to rise to the top and the relative investment priorities become apparent.
collaborative enterprise risk management and information tools can provide this unique and open the way for value added, but rarely do organizations choose to move away from the spreadsheet approach.
Why?
If you think about what most organizations do after a major risk hits – they spend a lot of money on countermeasures to the risk, rather than on improving their risk management capabilities. As a consequence, the original risk is resolved but the next major risk can mature quite nicely.
Although some people would argue that this is a truism (If you could manage your risk, you would be better off!) – The fact is that even major organizations often require statistical evidence to support the need to invest in risk management.
A collaborative enterprise risk management approach supports the collection and sharing of data about risk. This can be used to navigate risks, support better portfolio investments and also deliver the (tangible) demonstration of the savings created. The only challenge is that they won’t let you have an effective Enterprise Risk Management tool until you prove its value!
A capable Enterprise Risk Manager (ERM) application (such as our own Adaptive GRC ERM solution), can help to quickly demonstrate the profit and advantages that are created through an enterprise-wide risk management technique.
