Are Qualitative Risk Assessments Fatally Flawed?

Early last month, I published an article explaining why I don’t discuss quantitative assessment methods like modeling, Monte Carlo simulation, and others very much and what companies must have in place before they can use methods like this to guide their decision making and strategic planning. In short, without establishing corporate governance policies, a strategic…
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Why Organizations Struggle with Key Risk Indicators and How to Make Them Work

If done properly, key risk indicators (KRIs) can be a valuable tool for proactively managing risks to achieving strategic objectives. As I explain in a previous article, being proactive is one of the key differences between traditional and enterprise risk management. Despite their potential for facilitating the proactive management of risk, around 70% of organizations…
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Are Top Risk Reports Really Helpful to Organizations?

As we enter a new year (…and a new decade), it’s always a good idea to take a step back to see what may impact organizations in the year ahead. Every fall, NC State’s ERM Initiative, in partnership with Protiviti, surveys C-suite executives and Boards across a variety of industries to gauge what they see…
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4 Considerations for Building Effective ERM Presentations

No doubt you’ve attended presentations that were unengaging and downright boring. You were glad they were over, but also upset that the last 1-2 hours of your life were a waste. Being on the other side can be even more frustrating, even demoralizing… You spend hours developing an extensive 30 (or even 50!)-slide PowerPoint presentation.…
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quantitative

Quantitative Risk Analysis: What Companies Must Have First

The goal of my blog has been and will always be to distill ERM concepts into actionable insights for anyone interested or who is tasked with risk management in their organization. If you browse around, you will find that I discuss qualitative risk analysis methods like scenario planning, root cause analysis, and just plain old…
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Top 20 Risk Management (…and Other) Resources for 2020

It’s hard to believe that a new decade is now upon us. The 2010s were an exhilarating time for me both personally and professionally… It was a decade ago when I assumed the role of building an ERM program from the ground up for a large Florida property insurance company. That experience led me to…
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Why A Strong Governance Foundation is Vital to Successful ERM

When first speaking to an organization about ERM, executives know they have a problem, but they usually don’t know what it is, much less how to fix it. All they know is ERM is a possible solution. But before jumping in, I often find trouble spots that need to be addressed first. If they are…
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ERM May Be Simple to Understand but It’s Not Easy

One name you see me refer to often is Hans Læssøe, author of the book Prepare to Dare, and former strategic risk manager for The LEGO Group. Hans is currently a consultant based in Denmark. Not only do I admire LEGO for its stellar assortment of models that both my son and I enjoy building,…
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Be Warned: Impacts from Cyber Attacks Not Fully Insurable

In speaking with clients or other organizations, I’m often astounded by the response I receive when I ask about cyber-attacks. Too often, the risk professional or executive I’m speaking with says something like this – “Oh, we have insurance coverage for that…” This is cringe-worthy, like fingernails on a chalkboard cringe-worthy to me. Black Board…
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fourth industrial revolution

How the Fourth Industrial Revolution will Reshape Risk Management

In the waning years of the 2010s, the term “fourth industrial revolution” is becoming a commonly heard phrase for describing the nature and pace of technological change expected to take place in the decades ahead.  Other terms to describe this include cyber or digital revolution. What makes this revolution unique is that it not only…
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