Risk managers, ideally, contribute to long range planning and analysis. In a recent workshop, participants and I were discussing risk assessment of the firm’s strategic plan. Risk managers must consider wider systemic risk that could undermine the organization. They must also manage emerging risk on a longer time horizon.
On the issue of strategic risk, I first draw the reader’s attention to my 6-part series in which I discussed high quality risk assessment and future scenarios; strategic identity; stakeholders; and environmental scan. The essential point in that series is that risk assessment should be part of a complete research and planning process, incorporating methods to deal with “black swan” risks and high uncertainty.
In this post, I want to elaborate on the idea of risk managers questioning assumptions that typically go unchallenged. Risk managers can help broaden the range of discussion that informs corporate direction.