How can you use a consulting framework to improve risk management?

One thing I've found helpful is defining the most important strategic objectives of the product/business unit that you are building the risk management framework for. Without knowing the most important objectives of what you are serving, you cannot build the most important objectives of the risk management around what you are serving. Once those objectives are identified, now you know what you cannot afford to lose. And that becomes the starting point for defining the scope of risk management.

Defining scope is not just a preliminary step, it is a crucial aspect of successful project management and client satisfaction. It lays the groundwork for effective communication, risk management, and resource planning It serves as the foundation for successful project delivery and client satisfaction and helps in establishing clear and measurable project objectives, resource planning and allocation, Client Expectation Management, facilitates effective communication among all stakeholders, including consultants, clients, and team members, delivering high-quality work within the specified parameters, reducing the likelihood of errors or deviations from client requirements

Defining scope starts with knowing where your are presently, setting goals, and establishing boundaries (i.e. when bowling, you must know where the pins are prior to releasing the ball, and you must be aware of the gutters). In this example, the scope is to knock down all of the pins without stepping over the line or sending the ball to the gutter.

The scope should be clear with fully detailed information The accuracy of the construction documents that prepared by consulting avoid any further risks that may happen during construction

It will be helpful to do proper scoping first. This will help to prioritize the materiality of different risks and impact on the business. Without a clear sense of prioritization it will not be constructive for the framework to be relevant and ready for adoption.

I think this is a critical phase of any risk management cycle. One could segment risks based on their predictable behaviour and use a 2 by 2 framework to develop risk management action plan - Known -Known risks - known - unknown risks - unknown -known risks - unknown - unknown risks Most of the businesses struggle on unknown -unknown risks, for example, who could have predicted covid 19 and its impact on businesses ? Thinking about risks on this framework helps review scenarios which one may miss under a typical consulting framework of identify risks and accordingly provision contingency for unknown risks.

In my experience identifying risks is the most important part of the risk management process and has the biggest impact on the process. Be aware of low probability high consequence events that may not be evident in analytical data or trend analysis. If a risk is not identified it cannot be assessed or evaluated.

I think risk management traditionally does focus on a number of defined risks for a business. There is a broader mandate to develop resilience management as part of long term strategy development to ensure businesses can operate in a more dynamic and, most likely, a less stable environment.

A good consultant in risk management should help the business and take the first step in this field, which is the faster and more accurate identification of uncertainties by asking good questions and explaining work processes. In the following, a detailed investigation of the probability and severity of the impact will be carried out with the help of the technical and operational teams, and will lay the groundwork for planning to formulate a correct and efficient response to each of the identified risks.

Identifying risks after the fact is easy but may be useful for the future. However, anticipating and identifying risks in advance is essential to minimize their impact. This requires people who are naturally proactive - who are regularly looking up and ahead while thinking about what might happen instead of looking down and back to make reactive decisions. Assessment tools like the Predictive Index can identify these traits in people and help you make sure to have some proactive people in key leadership roles.

The structured approach in assessing risks in a project, consultants can effectively identify, analyse, and mitigate potential threats, thereby enhancing project outcomes Using the techniques such as brainstorming sessions, interviews, and workshops can identify potential risks across different aspects of the project Prioritize risks based on their likelihood of occurrence and potential impact by using qualitative and/or quantitative methods Use tools and techniques such as risk matrices, decision trees, and scenario analysis to analyse risks and their potential outcomes. Developing risk assessment response, efficient communication to the risk mitigation strategy and monitoring and review plays a crucial role

A consulting tool can use a grid to, first of all, to lay out at least 100 risks, and then give a priority rating to each. The process of the board directors and management team discussing this visual menu of risks will give a huge gain in insight into how the CEO can prepare the business for a bad scenario. A CEO of a hedge fund tells of a major fail due to having only one prime broker. They recognized the risk and changed to three prime brokers, and when ‘08 crash brought down the market, they were ready. I would recommend working with a consulting firm to do risk analysis AND the discussion. Too often, the quiet voices are the ones that need to be heard and a consulting firm will ensure that happens. It will be money well spent.

For each risk, you can plot on a 2x2 matrix with the axis’ being impact and probability. Priority risks for mitigation are high impact and high priority. Impact can be quantified in terms of financial value however it’s important to assess the full impact of any consequences not just the direct impacts. For example, interest rate increases may not just increase payments on current debt coming to term, it may also have other indirect effects such as impacting customer ability to finance products or increasing hurdle rates needed for new projects. These discrete indirect effects can compile together to create “perfect storm” events which can ideally be identified and thought through in advance.

La escucha activa de los empleados puede ayudarte a evaluar los riesgos que tenemos como gestores de la empresa. La actividad del día a día no te permite identificar los riesgos que como empleador tienes. Dedicar más tiempo a evaluar el avance de una empresa te ayudará a minimizar los riesgos de fracaso empresarial.

By employing a systematic risk assessment approach, consultants proficiently pinpoint, examine, and alleviate potential threats, ultimately improving project results. This involves conducting brainstorming sessions, interviews, and workshops to identify risks across various project facets. These risks are then prioritized based on their likelihood and potential impact, using qualitative and/or quantitative methods. Tools like risk matrices, decision trees, and scenario analysis facilitate the analysis of risks and their potential outcomes. Efficient communication of the risk mitigation strategy, alongside the development of a risk assessment response and diligent monitoring and review, holds significant importance.

True Risk mitigation exceeds that of mere compliance/ticking a few check boxes. In the real sense it would mean going back to the drawing table and completely redefining priorities , policies and processes. This would mean embracing hardcore change management at all levels, continual technological infusions and measuring the outcomes. And keep iterating as newer risks keep emerging.

Financial risks are a central concern for companies across all industries. To mitigate them, a multifaceted approach is necessary, tailored to the specifics of each risk. A common strategy is investment diversification, which involves spreading resources across different asset classes and geographies to reduce exposure to losses in a single area.

Risk Ranking Focuses Mitigation Assessing and ranking risks helps focus what to mitigate and how much to invest in risk mitigation Not every risk should necessarily be mitigated Industry wide risks are equally important as a whole sector may be tarnished or implode Past track record and events highlight potential risks Equally important to get external views from independent thought leaders re risk levels and mitigation- people who do not have a myopic view . A continuous improvement culture can mitigate risks too.

Le principe d'amélioration continue passe par des exercices destinés à développer et entretenir les postures à adopter en cas de crise. Les militaires appellent cela des "manoeuvres", des moments uniques qui permettent de poser des hypothèses et de travailler sur les plans d'actions qui peuvent en découler. Ainsi, en situation réelle "l'hypothèse meurt à votre place", ce qui n'est pas négligeable ;-)

Using a consulting framework can benefit risk management in several ways. 1) it can help define the scope and objectives of the risk management process, and align them with the overall strategy and vision. 2) it can help collect and organize relevant data and information, and use them to create a comprehensive risk profile. 3) it can help prioritize and evaluate the risks based on their likelihood and impact, and develop appropriate responses and contingency plans. 4) it can help monitor and review the risk management process, and measure its effectiveness and outcomes.

Everyone has adopted a comprehensive approach, and the next step is to integrate it into the organization's culture. Learning from experiences and adopting a risk-aware mindset will further strengthen the framework, provided there is support from the entire organization, both internally and externally. Often, risk assessments can reveal opportunities! - edited and proofread by AI

Always ask the question, what can go wrong. How to derive what can go wrong, there are many different ways, some of them are: analyze historical data to identify outliers / patterns and further investigate the root cause of these, another way is to review policy, procedure, technical documentation, blueprints etc and assessing these against how effectively they have been implemented or followed…

Having done all the scoping, identifying and mitigating risks, consider continuous monitoring. Risks evolve with such high speed, it's important to monitor them through risk registers or dashboards. Lastly, don't forget the people - build awareness through risk training sessions, it helps embed a risk culture within the organization. The risk framework or strategy may fail if the culture is not supportive of risk interventions.

I feel understanding the key objectives has been the base of all problems. Looking behind scope,softwares is the key importance. We also need to understand the politics of the application this is the new key to success

The definition and impact of risks vary across industries, time periods, and individual businesses. A robust risk framework should be based on an agreed business strategy, allowing for iterative creation of a risk framework aligned with the strategy. This involves considering cross-functional internal and external factors, current and future risks, and utilising past occurrences, market intelligence, and other data sources.