Don’t count on it
I was reading an interesting blog post the other day that stated that Risk Management is something organizations do, not something they buy. This struck a chord with me.
I found myself thinking about the pros and cons of this viewpoint. While simply buying a tool to manage risk clearly isn’t going to do the job on its own, these days, you can’t manage risk across a complex enterprise, or even a project, without some form of specialist technology.
When we boil it right down, organizations are made up of people who do their jobs to the best of their abilities. However, while you are a risk professional, most of the other people in your organization probably aren’t.
As we all know, getting the risk management process to work across the company might work on paper, but is often hard to implement in practice. Risk must continue to find ways to demonstrate the value of risk management. Talking to one of our clients recently, one of the key benefits of using ARM was that they could demonstrate the need for contingency within project budgets. Having a platform that can roll up risk positions and provide a summary for management has helped risk managers provide meaningful intelligence up to the board, to support decision making.
Providing business risk owners with a specialist tool that provides all the risk management functionality they require, packaged in an easy to use format that they can access, is a major step towards getting traction with users.
Another benefit this particular client saw, was that by holding all risk intelligence in one place so that everyone had access to it, in a meaningful way, has meant that business decisions are based on a huge amount of information and intelligence. The net result being better decisions.
Being able to demonstrate business benefits to the board is critical for getting senior management support. So while risk management is something that every organization should and must do, and getting the culture right to empower this is vital, so, too, is having the right tools to enable all of this to happen.