Why is the risk manager so caught up in the idea of identifying the emerging risks? People are spending hours thinking about this. Why not think about emerging opportunities?
But you’re customer is the CEO. They are looking forward. Could we not spend some time thinking about opportunities the new world can offer us. Highlight this and align with the strategy manager when reporting to the management team.
During this discussion some risks will emerge which will be part of the risk management strategy needed to stabilize and grow the company.
One point that has been highlighted again and again is the speed of change. The management teams of any company need to move, change. But how and in which direction? It’s time to take a step change in how we consider risk management and implement our own preaching.
We have political instability in many countries, religious and ethnic cleansing taking place. We have climate issues and growing social unrest. This is all having consequences on supply chain, productivity, talent retention, customer base and stakeholder desires.
Volatility is the result.
The risk manager should be looking at the cause of this volatility and not only the symptoms as the actual causes will stay and probably get worse in the near future. And I’m not sure these great models which have been built will be able to handle this volatility as it’s based on consequences of the actual issues.
The reporting on opportunities will also be poor if not based on the trends we are seeing from a global standpoint. I have put some thoughts into a document which might be heavy reading and you might not agree with but based on what I have read, what we can see happening today, and global trends its a possibility and a different way of thinking.