risk appetite

Determining the Best Approach for Low Probability Risks

To start today’s article, I would like to share a family story from July 2021… My husband Nathan was taking our son Jackson to his first baseball game. The two of them took a “guys” trip to see a minor-league team in my former hometown about 3 hours away. On their way, they stopped at…
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Risk Appetite

Risk Appetite: Bridging the Gap Between Two Extremes

If there’s one thing I have come to appreciate in my life, it’s how there can be so many perspectives and wildly differing opinions around a given topic, be it politics, religion, sports, or even something as inane road maintenance in a neighborhood association (don’t ask!). In the risk management world, few other topic garners…
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Risk Appetite and Risk Tolerance – Which Definitions Do You Use?

In follow up to our recent article on handling risks that exceed the company’s appetite, we would like to share this perspective from our friend Hans Læssøe on this complex and controversial topic. Hans’ article below describes how the world’s leading risk management standards, COSO and ISO 31000, have differing definitions on risk appetite and…
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3 Steps to Handling Risks that Exceed your Company’s Appetite

As I and others repeat often, it is impossible to manage every risk. Doing so is counterproductive and leads to even more problems than it solves, including preventing your organization from achieving its goals and objectives. Here is the truth: life is about choices and resources (time, financial, etc.) are scarce. Risks are no different.…
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visual aids

Harnessing the Power of Visual Aids to Prompt Robust Risk Conversations

There’s a good chance – 65% in fact – that you are a visual learner. I personally put myself in this category. Rather than reading text or listening to instructions, I always perform better and remember more through visual aids, especially on a subject I’m not familiar with. Numerous research studies back up my personal…
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7 Tips on Conducting a Successful Risk Appetite Workshop

A few months ago, I published an article outlining how risk professionals can develop engaging presentations and workshops. In the article, I discuss how ERM presentations are more than just a report, but instead a way to engage key stakeholders. Although a risk appetite workshop was used as an example in the previous article, a…
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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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