Look at the effectiveness of the risk management strategy, methodology, and practice, not just for protecting its financial value, but also including people value, reputation value, brand value in a structural way.
The efforts on identifying, integrating and managing risk are critical to build business advantage in the long run. Risk management, or at the higher level, risk intelligence becomes a strategic imperative for business change or innovation.
Organizations need to have the right dose of risk appetite and high risk intelligence: Assuming the risk is highly likely to occur, But in practice, most of today’s risk management is reserved for huge and costly endeavors; there is no amount of quantitative analysis that can accurately predict what opportunity or risks lies ahead. Corporate management needs to imagine with many experiences involved in current or in the past, estimate the impact of upcoming events that may happen in strategy/operation plans, and the consequences .
Businesses should weigh risk and reward accordingly. Organizations have to shift from a risk-avoidance to a risk management & risk intelligence mentality. Business risk analytics is the logical process of the systematic and methodological selection of data to track the corporate behavior of past decisions, develop information-based risk analysis and apply management science to support decision-making related to risk management in an enterprise for supporting future business directions.
Root cause analysis helps to optimize business process management, optimize risk management, and improve problem solving effectiveness: Risk analysis and intelligence is part of business intelligence which helps the organizations to identify hidden risks and improve business effectiveness. Keep in mind, the cause-effect of the problem is not always linear, as cause-effect may be seen as yet another cause. A small effect in one place can cause a cascade of events that produce a nonlinear big impact.
Businesses should weigh risk and reward accordingly. Organizations have to shift from a risk-avoidance to a risk management & risk intelligence mentality. Business risk analytics is the logical process of the systematic and methodological selection of data to track the corporate behavior of past decisions, develop information-based risk analysis and apply management science to support decision-making related to risk management in an enterprise for supporting future business directions.
It’s not so effective to use linear logic to understand highly complex, nonlinear cause-effect relationship scenarios. The role of risk analysis is to understand the business context, leverage data to identify risks, analyze and dig into root causes of failures, and come up with recommendations that can be acted on, in order to solve complex business problems.
It’s important to develop business capabilities to tolerate ambiguity and manage risks proactively: Often a big risk is that the risk management system is detached from the strategy/change management of the business. Business management needs to define organizational risk appetite and risk attitude so they can estimate the level of the business tolerance for the resulting downsides risks. Organizational leaders today need to see further than what all others see; understand issues from new angles, broader perspectives, deepened perception. They can leverage information based advanced analysis to predict what will happen and take steps further - what they should do upon it.
The organizations with solid risk management competency can prevent potential problems, and handle business vulnerability smoothly to improve business effectiveness. Thus, it’s critical to integrate risk management into a variety of management approaches by measuring, managing or modeling risks, helping to move the organization a couple of steps forward in business excellence.
How to frame an intelligent enterprise is the top priority on every forethoughtful organization’s agenda. Solid risk management enables the accumulation of enough corporate resources to thrive. Look at the effectiveness of the risk management strategy, methodology, and practice, not just for protecting its financial value, but also including people value, reputation value, brand value in a structural way.
It’s important to develop business capabilities to tolerate ambiguity and manage risks proactively: Often a big risk is that the risk management system is detached from the strategy/change management of the business. Business management needs to define organizational risk appetite and risk attitude so they can estimate the level of the business tolerance for the resulting downsides risks. Organizational leaders today need to see further than what all others see; understand issues from new angles, broader perspectives, deepened perception. They can leverage information based advanced analysis to predict what will happen and take steps further - what they should do upon it.
How to frame an intelligent enterprise is the top priority on every forethoughtful organization’s agenda. Solid risk management enables the accumulation of enough corporate resources to thrive. Look at the effectiveness of the risk management strategy, methodology, and practice, not just for protecting its financial value, but also including people value, reputation value, brand value in a structural way.
1 comments:
This was really interesting to read. Such a magnificent work. The design of that building is unique and cool.
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