I recently read that risk management begins and ends with decision making. Perhaps this is right, but I believe not in the sense that this statement was originally made. Risk management is more than just identifying the value at risk and deciding which is the best option. While this is important it is only half of the story.

Every plan, every project, every business endeavor operates in the presence of uncertainty and this uncertainty creates the opportunity for risk. This affects decision making, of course, but also affects how a company is organized, structured, the systems and processes that are put in place, and the culture it needs to contend with uncertainty as they make progress towards their goals and mission success.

Unfortunately, up until now, many companies build their defenses around disparate management systems implemented across functional silos and reinforced by reactive behaviors. This creates the possibility for risk … Read more...