Natural Selections, September 2018: Want to report risk properly? Then keep taking the tabloids.
All your risks on a single page!
Sounds great doesn’t it? It certainly does to directors frustrated with long-winded risk papers of (shall we say: ‘uncertain’?) clarity and relevance - none of which helps the continuing challenge of raising the credibility of risk-management.
But reporting risks with clarity, brevity and relevance is straightforward if you follow some simple principles, and in my experience the two keys ones are:
“Write down risks as risks”: What is the cause of the risk? What is the possible effect?
“Set the risks in context”: Ironically, try to avoid using the word ‘risk’ – talk instead about what the organisation is trying to achieve.
If you really understand something you should be able to write it down on a single page. Even more succinctly just consider the immediate impact of a tabloid headline. Risk reporting is no different and tabloid risk reporting really does work - give it a go.
Steve, I agree - to gain management attention? keep it short and positive. I'm not sure you need to avoid the word 'risk' altogether, but it does help at board level to focus on risk being a 'positive force' rather than pushing 'risk management'.
Forensic Investigator
6 年Sound advice
Group Head of Risk, Insurance and Internal Audit
6 年Here is a better idea: all risks in 2 graphs distribution and tornado diagram, the way risk was always meant to be reported
Operational Risk, Governance, Compliance and Transformation
6 年Yes, keep it simple. The ERM process starts with an explicit statement or understanding of the strategy, goals and objectives. Once understood, major risks can be identified. An holistic view is critical.