Summary
In today's business climate, where the unchecked, excessive risk appetites of financial institutions have led to the collapse of global financial markets and staggered entire national economies, risk management faces increased scrutiny. The challenge for risk managers, then, is not risk identification. The difficulty comes in communicating risk management's benefits to decision makers so they can understand risk versus opportunity and then act accordingly. Risk management should not be seen simply as a "cost of business," but instead as a way of advising the board on which investments can be managed well enough to extract a better return than their competitors. To achieve this, risk managers need to: 1. Learn the board's language. 2. Prove that risk management is useful. 3. Raise risk issues at the right time. By doing this, risk managers can capitalize on the moments when risk management can command the board's attention and gain their buy-in before the opportunity passes.
See the full content of this document
Extract
Talking the Talk
Risk management should not be seen simply as a "cost of business" - as it too often is - but instead as a way of advising the board on which investments can be managed well enough to extract a better return than their competitors. To achieve this, risk managers need to (1) learn the board's language, (2) prove that risk management is useful, and (3) raise risk issues at the right time.
Learning the LanguageRisk management has its own vocabulary and methodology, but so does the board. Learn to address the boa...See the full content of this document
Sponsored links
