Riskion claims to deliver “proper risk management, driven by mathematically valid measures that permit actionable insights into how risk affects finances, customers, the markets, impacts upon the environment, strategies, projects, competitors and thus, the entire organisation.” This, says Forman, is a risk management framework that can simultaneously measure and visualize risk from the points of views of the CFO, Chief Risk, Chief Operating Officer, and the Board of Directors.
Risk management is a strategic advantage, developing and optimising improved risk controls frees-up resources for other strategic objectives.” And, the most astute of those risk visionaries are ones who recognize that you can’t truly manage risk without the ability to measure risk, including both past incidents and future risks. “If you do not measure risk and understand what controls are required to manage the risks you will be reactive versus proactive and someone else will be occupying your office. It’s not a matter of if it’s a matter of when an unmitigated or unknown risk will impact your business and then all that is left is the screaming and gnashing of teeth.”Ĭhange mindset: Seek strategic advantage in risk managementįorman says that Expert Choice designed Riskion for management teams ready to act as “risk visionaries realise that real risk management is more than compliance. Robert Scott Jack II, (formerly Deputy CIO for the US Marine Corps., Director of Communications and Information, Headquarters Air Force Global Strike Command, and currently President and CEO of BeNimble Consulting,) agrees that better measures of risk are needed. “Measurements about the relative importance of objectives, organised in a hierarchy, can be used to derive comprehensive and scientifically valid priorities.” Then, he adds, “The derived ratio scale measures are collected using techniques to produce ratio measurements that overcome cognitive limitation, use redundancy to improve accuracy and identify and reduce inconsistency and bias.”
“there exists a comprehensive and reliably valid process, that can empower you to truly know how to spend and manage the organization’s risks in the context of maintaining long term competitiveness and surviving short term catastrophic events.”Ĭhange mindset: Riskion innovates using advances in data and behavioural scienceĮxpert Choice urges C-level executives to use modern techniques, like its Riskion solution, which embraces “the scientifically proven concept that humans and organisations approach risks to gains differently than they approach risks to losses.” Forman says that senior leaders can use Riskion to facilitate collection and synthesis of data about the past with expert judgements about the future, (where data is often not present, but can still be reliably derived). Forman says organisations who continue to rely on simple risk checklists, or on GRM and ERM tracking systems which often leave key risks uncontrolled, and fail to identify future risks–inevitably leading to a misallocation of organisational resources need to know that C-level executives often think, (or hope,) that they are addressing risk through GRC, compliance, cybersecurity solutions and probably don’t necessarily grasp that these solutions singly or combined do not provide the “full picture” of the domino effect of risk at the enterprise level.”īut hope isn’t a plan. No wonder that s enior leaders, at their peril, cede their oversight and rely too heavily on their Chief Risk Officer and staff to manage risk.
And, “ith so many demands for organisations’ resources for needs that are certain, such as improved customer relations and product development, it is tempting to allocate resources for needs that are certain rather than invest in controls for a myriad of uncertain risks, most of which will never occur. And, concern over criticism in failing to do enough to manage risk is often justified, given common simplistic and ad hoc efforts that fail to control risk.īut, leadership is typically relegated to receiving briefings that lack sufficient specificity about the prioritization of the organization’s objectives at risk. Forman, Expert Choice Chairman and Principal Decision Technologist finds that the C-Suite lives in fear of public or Board exposure.