Home > Risk > These may not all be about risk, but they are fascinating

These may not all be about risk, but they are fascinating

January 11, 2011 Leave a comment Go to comments

The Cutter Consortium has just posted a fascinating blog with challenging questions. I am not sure they are necessarily all about risk management (as indicated by the title of the blog), but they do discuss issues all concerned about risk – and effective management – should think through.

I particularly like the first item, Agility Quotient. I have been discussing with a group of colleagues the relationship between risk management, agility, and resilience (a topic for future discussion).

The second, Inconsistency Quotient is also great – mandatory reading for all in departments of “No” (traditional internal audit and risk manager functions).

What do you think?

  1. January 11, 2011 at 2:12 PM

    Thanks for the link. You’re right, it’s a great post.

    I’d argue that they are all about risk, though some are more strategic than others. If you’re looking at the whole enterprise, then it is hard to argue than any of them can be ignored.

    If your firm is reacts slowly, that affects how you should manage your risks.
    If your firm is inconsistent, it can increase your exposure to risk.
    If your firm does not manage talent well…
    If you do not know what your competitors are doing…
    If you do not innovate well…

    It’s a great piece. Great points, well written. Again, thanks for the link.

    Best regards, Nick

  2. John Fraser
    January 11, 2011 at 5:44 PM

    1 & 2 are basic ERM. 3 re staff resources is partly ERM identifying the need and good human resource management ensuring appropriate skills, true of every aspect of HR needs. 4 is covered by ERM and the use therein of environmental scans. 5 is true but needs balance, you cannot focus only or overly on innovation and ignore balancing that with maintaining the cash cows (remember the fable of the dog and the bone?). All good points. Basic RM.

  3. Paul Sobel
    January 12, 2011 at 11:09 AM

    It’s a good list and I agree with the others that these definitely fit within any ERM discussion. My view is that they fit particularly well when assessing the risk management capabilities of an organization, which is typically done using a maturity approach rather than a pass/fail best practices approach. When assessing an organization’s capabilities to effectively understand and manage its key risks, it makes a lot of sense to evaluate, among other things, how agile, consistent, talented, competitively aware and innovative the organization is. So in summary, the article contains some good points that supplement much of the current body of knowledge on ERM.

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