“Give Me a Break” — Keeping “Risk” Analysis Simple

You may also like...

3 Responses

  1. Tim Collins says:

    Managing risk is everyones responsibility. It is a key component of creating an effective culture of compliance. If we try and make it only one person’s responsibility like Michael mentions we will be creating a single point of failure and most know that does not reduce your risk in anyway.

  2. Voice of Reason says:

    This is an ignorant rant. As an example of one of the many flaws in this article consider that the author talks about identifying enterprise risks and then, when he says who would do this, systematically ignores key risk types. Sure, he mentions IT, financial, and compliance/legal…what about key business risks that don’t fall in those buckets…strategy, competition, pricing, marketing, expense management, etc.

    • Michael Volkov says:

      Thank you for your comment. While I am reluctant to share comments which use inflammatory language, I thought that sharing yours would hopefully focus on the substance of your comments. Unfortunately, I think you missed the point of my posting — everything you list in the potential “buckets” of information can easily be assigned to subject matter experts in the company. For example, a Chief Financial Officer would be able to address a number of your financial issues, a Chief Operating Officer, or Business Development Officer can easily handle many of the other issues. The question and need for simplicity is straightforward — someone within the company has to take ownership of a specific issue. That can easily be accomplished by assigning these matters to the subject matter expert. The creation of a “risk manager” is an impossible task, with little benefit, other than creating more bureaucracy and a person who can be blamed if something is missed by someone who should be held accountable. Rather than reacting with knee-jerk responses wrapped around inflammatory terms such as “ignorant” I would urge you to take a careful and focused look at current risk management practices and the need to streamline those practices to make them more effective. Obviously, given the recent financial miscalculations by numerous companies in the last 30 years, something is not being done right and so far risk managers have done very little to counter that trend.