Unintended Consequences: The High Cost of Focusing on Risk Management instead of on Managing Risk

In response to the damage and destabilization created by the financial crisis and its continuing fallout as well as other destabilizing events in the non-financial world, companies are increasing their attention on risk management.  But having, or implementing, a risk management program does not necessarily mean your company is managing risk, witness JPMorgan, a firm with the reputation for having the best risk management among the investment banks.  This webinar discusses the dangers of focusing on risk management instead of actually managing risk. It addresses the natural tendency to focus risk management plans on obvious and known risks, i.e., insurance related risks, regulatory compliance, credit risk, reputation risk, known natural disasters – flood, earthquakes, tornadoes, while failing to account for the “transparent vulnerabilities” – the less visible threats that can generate not only high-impact but systemic and cascading impact.  The webinar considers 12 areas (i.e., Sovereign debt, Infrastructure Decay, etc.) as examples of transparent vulnerabilities that are not being addressed sufficiently and presents several scenarios of how not addressing these risk areas can develop into a crisis that could impact your organization.  Finally, it offers five critical things every CEO needs to do to ensure their organization is effectively managing risk instead of just going through the motions of a risk management program.

 

Main points covered:

Presenter:

This session was presented by Geary Sikich, the principle of Logical Management Systems Corporation. He has written over 275 academic and applied papers which have appeared in international journals.

 

Date: April 14, 2016

 

Organizer: Alba Keqa

Unintended Consequences: The High Cost of Focusing on Risk Management instead of on Managing Risk from PECB