New website = RiskCommentary.ca What are the key questions of senior executive in considering the adoption or remediation of enterprise risk management? Answers to these questions form an overview to guide the successful roll-out of ERM. Key questions entertained by the C-suite with regard to ERM likely include these three: a. What exactly is ERM? Due to uneven development in the field, definitions are many. I offer a carefully crafted definition. b. Is there a verifiable value proposition? get ...
Oct 12, 2021•13 min
New website = RiskCommentary.ca What is the “upside” of risk? Does ERM manage opportunity meaningfully? It leads to a structured innovation program that risk managers can lead with confidence. 1. Opportunity - origin of the idea in ERM 2. Opportunity - how can we make sense of the idea? 3. Opportunity - as innovation 4. Innovation a. an established discipline b. within the grasp of the risk manager; an expanded role 5. Innovation - Free Online Introductory Course 6. Innovation - Paid Course Summ...
Oct 06, 2021•15 min
New website = riskcommentary.ca [Re-edited for clarity.] Due diligence is not the same as risk assessment; they are complementary. Due Diligence and High Quality Risk Assessment: how could they be used? 1. Quote: the hope for a less quantified, more qualified and thoughtful approach. 2. Due diligence definition vs risk assessment. 3. Order of operations: a. select using matrix with criteria; b. conduct risk assessment. 4. Maturity matrix definition. 5. Thought experiment: due diligence for inves...
Sep 28, 2021•15 min
New website = riskcommentary.ca ERM, for some, consists solely of Financial Risk Management. Is this sound? We offer commentary on quantitative modelling and its place in Enterprise Risk Management. Quantitative methods examples Chief limitations of quantitative models Proprietary internal risk rating systems Forecasts and probability estimates 2008-2009: crisis in risk management methods? Strategy and market risks scuttle the company Recommendations Quotes from the financial experts What consti...
Sep 21, 2021•16 min
New website = RiskCommentary.ca ERM mid-life crisis: how to rejuvenate and validate the program. The curious juxtaposition of need vs poor take-up. Steps in analyzing and fixing poor take-up in ERM programs. Several specific fixes for improving the compelling nature of risk information. What about “opportunity”? Ref: Innovation. What about other risk management sub-disciplines? Return to first principles in planning and HQRA. Review again the principles of program success (Ep 15). KEY QUOTE “The...
Sep 14, 2021•15 min
New website = riskcommentary.ca How to implement an Enterprise Risk Management regime that is readily accepted and endures? Answer: by mastering the principles of program success, which will set you apart as an administrator. Edited for length. Employ proven success factors for program implementation shown in studies. 1. clear goals and objectives - how to formulate them? 2. senior executive support - how to secure meaningful exec support? 3. staff buy-in, the age-old problem - how to get take-u...
Sep 07, 2021•14 min
New website = riskcommentary.ca How can we roll out Enterprise Risk Management with a minimal footprint? Edited for length Principles-based approach value proposition (cost-benefit analysis) - principle: no big capital outlays; practitioners prove method through trials execution - principle: gradual, organic growth, not command and control risk ID methods - principle: rigorous definitions and procedure; integrate with existing practice policy, standard and governance - principle: minimal paperwo...
Aug 31, 2021•12 min
New website = riskcommentary.ca Enterprise risk management implementation: Who is the champion? Edited for length. Significance of the Enterprise Risk Management champion Who actually is leading this work? What are the requisite qualifications and background? Is any special training needed? Background and qualities Functions Principles of program success (discussed in full E15): A few success factors and their relation to ERM Summary of traits of ERM champion KEY QUOTE ”the ERM champion’s succes...
Aug 24, 2021•16 min
New website = riskcommentary.ca High Quality Risk Assessment: What is the true significance of the risk register you’ve built so carefully? How does it lead to dramatic, breakthrough risk mitigation? Facilitating risk assessment Risk register - the full significance What have we accomplished so far? Quality infused at each step Result: revelations in the perception of the risk profile Breakthrough Risk Mitigation mitigation action that is truly “breakthrough” and dramatic expert participants sor...
Aug 17, 2021•16 min
New website = RiskCommentary.ca High Quality Risk Assessment implies comprehensive risk identification and a sensible assessment using four key criteria. I share a generic methodology developed and refined over years with clients. Review of the advantages of round table method Risk identification - finer points of risk formulation Facilitation - finer points of facilitation LIFT: Listen; Interpret; Formulate; Test Risk assessment - four aspects Summary KEY QUOTE Definition of High Quality Risk A...
Aug 10, 2021•19 min
New website = RiskCommentary.ca The process of risk identification itself. We can do so with confidence, because all of the procedural and conceptual elements we need are finally in place. Recap High Quality Risk Assessment: Preferred method: round-table of experts Prepared session: agenda, context paper and facilitation aids Risk formulation rules - see blog post. Points in facilitation Review: conceptual and procedural foundatio Notice that in our preparatory work, we have: proper concept and ...
Aug 03, 2021•17 min
New website = riskcommentary.ca Looking carefully at conventional advice, we discover why risk ID can be ineffectual. Confusion entrained by the supposed risk ID methods set out in conventional literature. · interviews and surveys, questionnaires · audits, physical inspection · brainstorming · networking with peers, industry groups · judgemental - speculative, conjectural, intuitive · history, failure analysis · examination of personal experience or past agency experience · incident, accident an...
Jul 27, 2021•19 min
New website = RiskCommentary.ca Context for risk assessment could mean projects, contracts, administrative workflows, technical processes, etc. Summary of the series to date. High Quality Risk Assessment. Establish the Context. Context Paper - The purpose is twofold: - to create a highly useful aid to facilitation; and - to create a testament to due diligence. Trap of trying to identify risk in business settings where goals are poorly formulated. What if we don't have hierarchical “goals” and “o...
Jul 20, 2021•16 min
New website = RiskCommentary.ca “Establish the Context” - the most misunderstood and underrated step in the whole risk management process. Recap of topics so far Establish the Context What do the standards mean by “Establish the Context”? What are the elements and true significance of “Establish the Context”? The headings in what I call the Context Paper, used to prep a risk ID session: 1. Title of the plan under scrutiny 2. Goals and objectives of that plan 3. Corporate values 4. Risk categorie...
Jul 13, 2021•18 min
New website = RiskCommentary.ca Foundation for ERM: you must have the best organizational planning practice you can muster. Recap: 3 basic steps in strategic planning process internal environmental scan goal formulation Three types of planning internal organization strategic operational Broader schema to try to relate planning and management practices (Agile, Lean, ERP, etc.) see Robertson Strategic Planning review to see where you might make changes Is strategic planning dead? Mintzberg’s artic...
Jul 06, 2021•12 min
New website = RiskCommentary.ca The all-important risk identification process: High Quality Risk Assessment. The first step is actually to fix the organization’s planning practise! Six steps in High Quality Risk Assessment Investigate and fix the planning practice. The intuitive, informal approach -- does it work? The importance of the planning language. Properly formulated goals. Properly informed goals. The crucial point in the development trajectory of organizations. Conclusion: we need prope...
Jun 29, 2021•17 min
New website = RiskCommentary.ca Time to get into the ERM process! Let’s start with definitions that reflect a precise method. *Definitions: rationale and approach 1. Enterprise Risk Management 2. High Quality Risk Assessment Significance of High Quality Risk Assessment process Summary KEY QUOTE “One key message here is: do not fall into the trap of trying to lead a risk ID session, much less implement an entire ERM program, where goals and objectives are poorly defined.” (Solving the Enterprise ...
Jun 22, 2021•19 min
New website = RiskCommentary.ca ERM myths, observed by your host over several years’ experience as practitioner and educator. For each point, we will give you the practical take-away to apply in your risk management program. Myth #8: Managers, directors, analysts, CEOs, etc. know how to implement new programs. Myth #9: Enterprise Risk Management can best be implemented by using a software application. Myth #10: Defining risk tolerance is essential to an ERM program. Myth #11: Monitoring complian...
Jun 15, 2021•19 min
New website = RiskCommentary.ca What are common misconceptions that can block success in your Enterprise Risk Management program? Your host Edward Robertson has a list of ERM myths, observed over several years’ experience as practitioner and educator. For each point, we will give you the practical take-away to apply in your risk management program. Myth #1: ERM is one thing. Myth #2: International standards (ISO 31000; COSO, etc.) give ERM implementation guidance. Myth #3: ERM is unproven. Myth ...
Jun 08, 2021•16 min
New website = RiskCommentary.ca Podcast launch! Is Enterprise Risk Management (ERM) dead? There is a stunning disconnect between the unprecedented need for ERM to be “instilled into the corporate DNA” and lacklustre risk manager survey results. Let’s explore why ERM is broken, and how to fix it. Welcome to the Risk Commentary podcast Who is this podcast for? Mission Credentials Is ERM Dead? Survey results Why is ERM so incredibly convoluted and seemingly complex? KEY QUOTES ”We are in an unprece...
Jun 01, 2021•13 min
