The Economist’s risk management study in 2010 found that there is a continuing perception of risk management as: “…support function staffed with narrowly focused specialists, such as business continuity planners, insurance buyers, or health and safety officers…” (Fall guys – risk management in the front line). Then Forbes/Deloitte reported in 2012 that a significant sector of corporate employees are “unaware of what they need to do concerning risk”. (Aftershock: adjusting to the new world of risk management).
Back December 2006 I published an article with Risk Management Magazine. It is relevant to the question of broadening the risk manager’s role to bring risk assessment to strategic planning and policy. I wouldn’t change a word of it today.
Navigating the public policy labyrinth: using risk analysis for tough issues.
By Edward Robertson
Copyright Risk Management Magazine, Dec, 2006, Volume: 53, Issue: 12
All organizations have intractable policy issues that lie outside the realm of conventional risk management. If risk managers wish to promote greater interest in risk techniques among all enterprise disciplines–they must ask themselves: How can complex issues be subjected to structured risk analysis?
Studies on program implementation show that people will take up a new practice, such as enterprise risk management, only if it helps them do their existing jobs more effectively. There is a continuing need for practitioners to share stories about how to apply risk analysis in unfamiliar contexts, where purely quantitative methods cannot be applied.
Some useful insights come from the inner workings of the government of British Columbia. This Canadian province is already well on its way to establishing risk management as part of its core policy. Under the guidance of its risk management branch, the government adopted the Australia/ New Zealand 4360 standard and produced a 29-page ERM guideline to adapt the Australian standard to government business.
READ the full text of the article.