WEBINAR: Integrating Strategic Management and Risk Management
Many organisations claim they already integrate risk management into strategic planning. However, in most cases that’s an illusion as, on inspection, risk management is just an ‘add on’ that adds little real value to the planning process.
The concept of risk appetite seems deceptively simple: it is often described as how much risk we might wish to ‘take’ to achieve a desired return. In practice, however, an organisation’s risk appetite can be exceedingly difficult to tie down or define. .
Because risk is the effect of uncertainty on an organisation’s ultimate purposes, its objectives, it follows that any activity that involves making decisions which will expose the organisation’s objectives to uncertainty should be supported by risk assessment and should lead, if required to appropriate risk treatment. The purpose of managing risk is always to improve decision-making so as to make it more likely that the subsequent actions will contribute as much as possible to the achievement of the organisation’s ultimate purpose – the realisation of its objectives. It has no other purpose.
Strategic planning, like all form of planning, is only a series of linked decisions and unless those decisions are supported by the application of the risk management process the organisation can find itself with plans which expose it to too little or too much risk.
- How strategic management and risk management overlap and the synergies
- Why feeding information from an existing risk register or conducting a risk assessment after objectives are set yield little real value
- What integration really means and how to achieve it
- The hindsight, insight, foresight model
- Practically, how to integrate the risk management process into strategic planning and all other forms of decision making processes.