What do you do if your organization needs to improve its risk management practices?

Risk management practice for an organization is crucial for ensuring stability and resilience. As now the finance industry is growing and if we manage the risk within the organization by keep a check on the profile being sourced will manage the risk. We have to make robust policies, invest in training to team members, regular review of the policies & Stay agile and adaptive always to keep update on the trends happening in industry.

The very first thing, before using any standard, policy or procedure is checking the knowledge level of the company itself, sometimes before going to deep dive into the problems, understanding how people is dealing withe the problems must be the key, showing the basics like "what a risk is, its impacts, how to mitigate". I have already faced it in my carreer in the past. From the top management down to the basement, no one had the idea of risk management, working like the wave and the wind, letting it go, to make it happening, I trained the people, showing the necessities and results that risk management can bring.

The starting point is always reassess the overall business strategy and chosen or planned business model. The setup of the risk management framework needs to align with the same and then following up with a chosen more standardized framework to align with. On top of that, one clearly needs to ensure regulatory, rating agency and other stakeholders expectations are also being met. Alignment with the first line of defense setup is also helpful to create alignment and avoid duplication.

It's always good to start with the end in mind and then consider where you are today. This will facilitate the ability to create a road map to get where you need to be. Too often companies jump towards solutions before truly assessing and understanding risn management needs. Known risks should certainly be understood and planned for and the challenging unknown risks should also always be considered.

Scope is critical; your process depth and breadth need to match the risks you're trying to manage. Often we overdo it; we try to catch minnows with harpoons, not effective and costly. The other issue is how we define risk levels, considering impact and likelihood, and ensure you don't put too many controls in place or inflate risks. If people are too busy doing activities, and all risks seem high risk, then nothing is high. You just have busy people feeling like they are managing risk, and you will miss the obvious. Also, be sure to look at your processes through a modern lens—the controls you put in place 4 years ago may no longer be effective.

The list of things to improve might be long...in such case do not hesitate to enter into dialogue with stakeholders and team for implementation: setting the priorities right in an aligned way will bring focus and the best "return on effort".

The Gemba means the “place where value is created”. The idea is simple: if you want to improve your business, you need to learn more about your processes, people, and customers. This applies to Risk Management and Assessment with a few modifications! Utilization of this system creates opportunities to ensure scope and objectives are realistic and can be implemented at every level. We developed our early imaging program in worker’s compensation using this methodology. The goal eliminating frustration and driving down litigation. The scope, across the entire enterprise and the objective to seek the truth and align care through transparency.

Process, process, process! Right-for-you risk management software can bring substantial efficiency gains and reporting insights to take your program to the next level, but the tool is not the process! Until you have solid risk management processes in place, a tool will not return the value you are seeking, or whatever the vendor is promising. Tool implementation is not the time to design or redesign your process, as it only increases the cost and time to implement, and risks giving your program a bad reputation. Put the processes in place first with spreadsheets and manual effort, and get everyone comfortable with risk management, THEN seek and implement a tool to supercharge the processes you've already proven work for your company.

Organizations need to prioritize protecting their IT assets (Identity, Endpoints, Data, Apps & Infrastructure.) to safeguard business data and operations. The goal is to: - Prevent data breaches and ensure business continuity. - Address security vulnerabilities that arise from: Changes in asset config, New vulnerabilities in OS, drivers, or apps. Challenges: -Find & patch vulnerabilities quickly while maintaining employee productivity. -Balancing robust security with a user-friendly experience (XLA) for employees, not hindering their work with overly complex security processes. Cybersecurity risk management should focus on protecting IT assets by actively managing vulnerabilities to defend the organization against cyber threats.

1. Assess and know your as-is current state of maturity. 2. After that, you can define your aspirational maturity levels in the short term to long term (benchmarking against similar organisations with mature practices in the same sector also helps). 3. Next step is to Identify the resources (human resources and tools) you require to improve the risk management practices. 4. Identify the change management required to reach the target maturity levels.

Do not underestimate the power of Excel :) If you want to achieve quick-wins, Excel is your ally. Many times involving in a bigger project means no actual risk management until the project finishes. And, even with the tool deployed, many times you are not managing risks but the tool.

People is the core of the risk management. The more we can groom our people on risk management specially 1st line, the risk management becomes more effective. I am not supportive to mere classroom or formal training, rather it should be real life on the job training by involving them. The evaluation after the training should be a must do to ensure the learning is engraved well.

Capacita??o e treinamento constante s?o essenciais para manter as engrenagens funcionando. é imprescindível que todos os envolvidos saibam onde, como e quando atuar. Dessa forma, garantir que a cultura implantada seja natural.

In order to enhance risk management practices, it's crucial to educate and train your staff on foundational risk concepts, standards, and tools. Let it be personalized to each role!?? Swap through various training methods like online courses, real-time workshops, intriguing webinars, or illustrative case studies. Each brings a new dimension to learning and understanding. And don't forget about the feedback! A thorough evaluation of training effectiveness paves the way for continuous improvement and fosters a culture of active learning. ??

Former et éduquer le personnel sur la gestion des risques est crucial. à mon avis, cela crée une base solide pour une organisation s?re et informée. Personnaliser la formation en fonction des r?les assure que tous, des dirigeants aux employés sur le terrain, sont équipés pour identifier et gérer les risques. Diversifier les formats d'apprentissage, comme les webinaires ou les ateliers, engage le personnel et renforce leur compréhension. L'évaluation de ces formations est essentielle pour garantir leur efficacité et pour fournir un soutien continu. En définitive, investir dans la formation en gestion des risques est investir dans la sécurité et l'efficacité de l'entreprise.

The importance of fostering a culture of risk awareness cannot be overstated. The concept that each individual is a risk manager should be deeply ingrained. This approach significantly contributes to making the organization resilient to risks, as it instills a sense of accountability for risk management across all three lines of defense.

Everybody must be acting as a risk manager. Risk awareness covers all individuals in the organization such as Operational Risk, Legal Risk, Reputational Risk etc.

Culture is fundamentally where it all begins. An organisation can have strategies and implementation plans and cool tooling until the cows come home. However, if the folks who work there are not bought in to what you are trying to achieve it really is sunk time and money. Folks needs to feel that what they do correlates to the good stuff and the bad stuff that unintentionally happens in a company as it navigates through its cycle. JFDI does not work! Start with making every person understand their skin in the game when it comes to managing risk. Let them help shape how it will work. Simple.

Promoting risk awareness culture is the key here. All your staff should have sound knowledge on risk. To do that you can use various methods such as online trainings, talking more about risk and it's impact in team gatherings/forums, demonstration of risk via role play, creative quizzes etc. These are few things can be done but that's not the end, we need to explore more avenues to create a healthy risk culture.

This is a strategic and critical question for every organization. Risk Management capacity improvement is a continuous journey in order to timely support Business evolution and Business disruption management. From a technical stand point, reviewing/redefining RM objectives and Scope comes in first priority. However the Risk management practice is expected to be integrated into the business conduct and the strategy execution, then it is crucial to know where the organization perceives the best the value of risk management. This is genuinely the very first step to build your RM improvement agenda.

Being a steward of Risk Management for last 19 years ,I can tell you that Risk management is no different activities, it's rather very much part of each and every staff's JD in an organization. Evey staff is a Risk manager. There is a saying ,"A good CEO is actually a good Risk manager". However , a dedicated function is created headed by CRO ,to independently oversee risk management activities. CRO has to be a senior role reporting to board risk mgt committee , is responsible for managing risks. So to improve risk management activities, an organisation has to focus and re-focus on the basics as mentioned above I.e. ensuring that the structure works effectively and allow CRO to function properly. This lacks in most of the organizations.

Drawing on my experience at top-tier organizations in Canada and internationally, effective risk management requires robust support from the board and senior leadership. It’s crucial that the CEO & CRO collaboratively drive this across the company. The risk management team must provide clear, auditable assessments that resonate with leadership, clearly communicating the direct impact on strategic business objectives and how risks including emerging ones, could disrupt the company’s future. This playbook for effective risk management offers strategic insights to the board and leadership, enhances shareholder value, and empowers the organization to confidently navigate challenges and seize opportunities.