risk appetite

Does the Southwest Meltdown Prove ERM Haters Correct?

Most of the time, flight delays and cancellations are just an inconvenience for a small number of people. That cannot be said about the recent “meltdown” of Southwest Airlines’ operations over the Christmas 2022 holiday. While the intense winter weather gripping the U.S. affected all airlines, the impact to Southwest was especially severe with close…
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The 12 Days of ERM Christmas

Without a doubt, one of my family’s favorite holidays is Christmas. Part of the fun, especially for our son, is seeing what “Santa” brought, but most importantly, we treasure the spirit of peace and goodwill the season brings. And after what seemed to be a never-ending warm spell, the weather is expected to be good…
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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: 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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