Deloitte advises CFOs on risk
Deloitte has continues its risk-intelligence theme with a new product: The Risk Intelligent CFO, Converting risk into opportunity.
This is definitely something I would use to facilitate a conversation with a CFO that is not ‘risk-savvy’.
While the document is not perfect (it could say more about managing risk as part of every decision), Deloitte’s advice has some excellent points:
- The inter-relationship between strategy and risk, especially identifying and managing risks to corporate strategy
- You need to be prepared for the risks that you did not anticipate
- Focus on the risks that matter, and then monitor them actively
- Work closely with the board, ensuring they have the information they need
- Some risks should be embraced, where they can bring great reward
- Control risks to your reputation
- Risks interconnect and can cascade
- Understand and address risks of non-compliance
As I said, I would include more about making the consideration of risk a management competence: required training for every manager, so they can make risk-intelligent decisions.
What would you add to the discussion with and education of the CFO?