Here's how you can manage risks in the corporate world through problem solving.

Needs to be bigger than this simplistic view. As an effective risk manager it’s necessary to be scanning as far and as wide as possible then working out how that world view is going to be relevant to the organization.

To manage risks effectively, start by understanding your company's strategies, competitive advantage, and market position. This foundational knowledge helps you identify potential threats before they become real problems. Regularly assess market trends, regulatory changes, and internal processes to spot early warning signs. Staying proactive in this way allows you to address risks head-on and take advantage of new opportunities, keeping your business resilient and competitive.

I believe in regularly analyzing potential threats and opportunities through brainstorming sessions. After having considered different scenarios and their impact on the business its critical to keep a sense of the historical data, industry trends, and competitor performance to identify potential risks. Utilize risk assessment frameworks to categorize and prioritize risks based on their likelihood and impact.

In any business process, there are inherent risks. The key to effectively managing these risks is to identify them early on, as this mitigates half the battle. When assessing risks, crucial factors to consider are the impact, likelihood, and consequences. Unfortunately, client-side stakeholders often struggle with the first step of identifying the risks. By focusing on these three elements, organizations can better recognize and address the risks within their business processes, improving the overall success and resilience of their operations.

une gestion efficace des risques commerciaux implique une compréhension approfondie de l’environnement externe et interne de l’entreprise, ainsi qu’une capacité à anticiper et à réagir aux changements. Cela nécessite une combinaison de surveillance continue, d’analyse stratégique et d’actions préventives pour minimiser les risques et saisir les opportunités.

Not really ready to jump straight to analysis after scanning. It’s really important to assess relevance and validate with key stakeholders. Otherwise the risk manager can get ahead of themselves or worse out of step with the organizational strategic objectives or culture.

2. Analyse Risks: - Assess the likelihood and impact of each risk. - Use qualitative and quantitative methods to prioritize risks. - Create a risk matrix to visualize and categorize risks. 3. Plan Responses: - Develop strategies for each risk (avoid, mitigate, transfer, or accept). - Establish contingency plans and backup solutions. - Allocate resources and assign responsibilities for planned responses. 4. Implement Solutions: - Execute the risk response plans using project management principles. - Ensure resources are available as needed. - Communicate tasks and responsibilities clearly to all involved.

Don't forget to review the existing control framework when analysing risk. This allows you to accurately state the residual risk - and to properly identify and plan any required mitigation. 1) Engage with your system and process owners to understand what controls are already in place. 2) Analyse the breadth / type of those controls to understand whether you have 'strength in depth '. 3) Review the maturity of those controls. 4) From all this - understand where you remain exposed to risk and plan accordingly. From experience, even where there is a prevalence of controls, this can create a false sense of security with regards to the residual risk (e.g. where there is no control depth, or where controls are immature).

There are four main risk management strategies, or risk treatment options: Risk acceptance. Risk transference. Risk avoidance. Risk reduction.

The risk manager should analyse all risks identified. He should weigh and prioritize them to see those that need immediate attention if not its occurrence will have an adverse impact on the business. He will always behave like a goalkeeper in the post who will always watch the position of the ball to know when to run out and catch the ball than staying on the post to wait for the ball. Vigilance is his watch word.

Consider incorporating "decision trees" into your risk management approach. These flowcharts visually map out the potential consequences of different mitigation strategies. By creating a decision tree for each identified risk, you can systematically evaluate the potential outcomes of various mitigation options. This structured approach strengthens your risk management by ensuring a logical and well-considered decision-making process when choosing the most effective response to a particular risk. The decision tree allows you to visualize the impact of each mitigation strategy and choose the one that best aligns with your risk appetite and overall business goals.

Unless your role within risk management provides you with the authority to act - your residual risk status should be shared with senior stakeholders to understand next steps. This might result in a risk being 'tolerated' - if it is within the risk appetite. Or, it might result in the risk being 'transferred' from the initial risk stakeholder to another person within the business. Or, it might result in an immediate requirement for 'treatment'. In which case you should then identify the relevant stakeholders to document and agree actions, define deadlines and report back to management if there are delays... or upon completion.

While risk professionals are well familiar with the core principles of risk management — risk identification, risk analysis, risk control, risk financing and claims management — they are certainly not the only ones to rely on them in their daily thinking and decision-making.

You risk manager after analysing the risks should then proffer solutions to mitigate the risks exposed. We are now in a technological age. Crime rate has increased too Cyber crime. Thereby putting banks in a terrible risk. Customers complaint are mounting. ATM fraud, account pilfering, electronic transfer pilfering. You can mitigate the risks of loss of bank funds by building up of strong cyber security. Bank liquidation will be a dangerous option.

Está aí uma das parte do ciclo onde a Boa comunica??o com os diretores e a equipe de execu??o seja esclarecida para n?o haver falhas nas escolhas que melhor se encaixe na cultura organizacional da empresa e no processo do gerenciamento de risco

This part doesn't need to be complicated! If the solution is 'internal' (e.g. writing a new policy or process) then you need to identify the action owner/s, agree the action, define a deadline and report progress back to senior management (particularly if the deadline slips). If the solution requires third party input or tooling, or if significant expenditure is required, then a business case might also be required.

Step 1: Identifying the Risk. Step 2: Analyzing the Risk. Step 3: Involve the Stakeholders. Step 4: Assign Roles and Responsibilities. Step 5: Create a Risk Review Cycle. Step 6: Continuously improve.

5. Monitor Progress: - Continuously track the implementation of risk responses. - Use Key Performance Indicators (KPIs) and risk indicators. - Regularly review and update risk assessments and plans. 6. Communicate Effectively: - Maintain clear and consistent communication channels. - Engage stakeholders with regular updates and reports. - Use meetings, dashboards, and reports for transparency and collaboration. - Technology and Tools: - Use risk management software to document, track, and analyze risks. - Implement data analytics for more accurate risk forecasting and decision making. - *Risk Appetite and Tolerance: - Clearly define the organization’s risk appetite and tolerance levels. - Align risk strategies.

The analogy of a navigator adjusting sails is particularly apt, illustrating the need for constant vigilance and flexibility. Regularly reviewing risk management strategies not only helps in learning from past experiences but also ensures that the approach remains relevant and effective in addressing new and emerging risks. This proactive stance is essential for maintaining agility and preparedness in the face of potential challenges.

Keep a clear and concise communication. You avoid misunderstandings and gossip when the information flows in a good direction. Make sure to create a strategy that aligns well. First, you need to decide the frequency of your message. Then, you need to decide the channel in which you will communicate it. The main thing to keep in mind here is the transparency. You will not scare anyone by telling the truth. You will lose trust if you don't tell the truth. It's good to create an initial communication strategy. But keep in mind that you can adjust this accordingly. It can be an ad hoc communication if you have an update. It all depends on how you think it would be best to address it.

Effective communication is a necessity in life generally and it becomes crucial in business for both sides internally and external to avoid confusion because any misunderstanding can cause a lot of damage.

This list of requirements seems all back to front to me. It’s really important to have two way communications before doing all the other stuff. Otherwise there is a real chance of getting out of step with key stakeholders (eg your boss). Not a good place to be.

Effective communication among the team members is a do with out. Communication is effective when the encoder (the person sending the information) and the decoder(the person receiving the information) of information understand each other and do what is expected of them. Newsletters are used in some organisations in the dissemination of the information. All the efforts made in identifying, analysing will be a waste the people involved and told about them and the actions take to mitigate their effect on the organisation.

Horizon scanning is a necessity, it's more than this simplistic view around key steps in risk management. Understanding the organisation and building risk around that enables a risk culture to be established. This will then naturally lead to risk decisions being made at all levels. The decisions made at corporate level needs to be cascaded back down through the organisation.

With the advent of technology the world has become a global village. This has exerbated crime rate and business has become very risky to manage. The world is divided into developing and developed countries. Businesses in the developing countries and folding up in great numbers as a result of cyber crime and criminal activities that were unknown in the developing countries. Several risks cannot not be envisaged and therefore cannot be mitigated. Adequate measures should be extended to the developing countries in order to follow-up as a player in the global market .

In every business, taking risks is unavoidable, but how much risk to take is guided by the risk appetite set by the board. Understanding and defining this risk appetite is crucial because it sets the limits on what kinds and levels of risk the company is willing to accept to achieve its goals. Regular and transparent disclosures to the board and oversight committees are essential. These updates ensure that decision-makers are fully informed about the current risk landscape, enabling them to make better strategic choices that align with the company’s risk appetite.