We are discussing High Quality Risk Assessment, and set out last time the many benefits of writing a Context Paper as good preparation. But what now? Looking carefully at conventional advice, we discover why risk identification is typically so ineffectual and leaves people cold!
· audits, physical inspection
· networking with peers, industry groups
· judgemental - speculative, conjectural, intuitive
· examination of personal experience or past agency experience
· incident, accident and injury investigation
· scenario analysis
· decision trees
· SWOT analysis
· flow charting, system design review
· work breakdown structure
I surmise that the reason for such dismal survey results extended over years (see Episode 1) is that managers who had no experience in risk ID tried it without clear methods or definitions, and so quickly became disillusioned with the quality of the results. Make sure you understand the pitfalls and deficiencies of random “methods”.
- preparation of the Context Paper for the risk ID session (Ep. 007,008).
What is Risk Commentary?
We see a striking contradiction in all businesses: the sharply increasing need for Enterprise Risk Management, as opposed to risk managers' persistent reports of low perceived value of their own processes. Correctly implemented, High Quality Risk Assessment will not only address uncertainty, but even solve chronic business problems. Join Edward Robertson, successful ERM practitioner and thought leader, to discover a simple process that delivers clear value.