Phil Griff i ths

Icebergs in the desert

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Webinar Leader

Phil Griff i ths

CEO

Business Risk Management Ltd

pg@businessrisk.co.uk

The iceberg effect The turmoil in the world seems to continue

Increasing public unrest Wildly f luctuating oil prices. Natural disasters of a scale thought

unimaginable. Volati le stock markets

Probably less than 10% of the reasons for these issues are well understood, just l ike an iceberg, where 90% is below the surface

The iceberg effect

In this t ime of global change how do you steer a course through these icebergs in the desert regions?

The answer is to recognise the only real l ink between all these events – RISK – and then to try to anticipate, manage and then exploit such risks.

Think of r isk as driving a car

The car analogy

We should not speed but we do

We should always wear seatbelts in the back – but do we?

The car analogy

When did you last get your tyre pressures checked?

Some icebergs here?

Actions to take regarding key risks

Analyse the major surprises and near misses that you have had in the last 12 months

Invite all your key stakeholders to a risk workshop

Actions to take regarding key risks

Prepare media statements in advance to cover all possible crises

Offer special incentives for the best ideas to reduce risk or exploit opportunit ies

Actions to take re key risks

Communicate your att itude to risk and your required risk culture to managers and stakeholders

Do not wait unti l you are required to provide evidence of effective risk management by regulators or legislation – this wil l usually be too late

Ensure that you under promise and over perform – not the other way round

Risk Evaluation

Use only one risk matrix for the business – do not allow functions to develop their own

Risk treatment

Do not commit t ime and money in risk mitigation unless a monetary or other significant benefit can be demonstrated

Risk measurement

Set meaningful Key risk indicators (KRI’s) to warn you before risks materialise

Ensure that a graphical or tabular record of key risks for the Board

Risk measurement

Measure risks at 3 levels Inherent Residual Goal (or risk

tolerance)

The cost of poor risk management

Calculate the value of income required to cover money wasted due to poor risk management

Use this multipl ier as a business driver.

Risk ownership

Do not give too many risks to the same manager

If managers want to get a proposal through, they wil l tend to understate the risk (do not let them)

Decision making

Give executives a clear brief regarding the decisions that may or not be made by them before they attend each meeting with external bodies

JV’s and partnerships

Do not assume that because a partnership or JV is effective in year one it wil l necessarily be the same in year 2 and beyond

Project risks

How many projects do you know that have been delivered to time, to budget, and fully met the organisation needs?

Identify the risks in a project at the earl iest stage

You wil l almost certainly have to compromise on one of the 3

Decide at the start which you are wil l ing to compromise first

Major contracts

Hold risk workshops with the shortl isted suppliers or contractors before awarding a contract

Environmental risks

Ensure environmental risk is taken seriously

Cost savings are often untapped

The wider community

Identify 3 new ways to benefit the least able section of the wider community you serve

Energising your staff to manage risk

Risk awareness for staff

Induction programme

Staff meetings Newsletter Link to

performance Open opportunity

to contribute

Get your Assurance teams involved

Coordination

Ensure your assurance providers roles are coordinated to avoid duplication of effort

Business continuity planning

Ensure that your Business Continuity plan covers all eventualit ies and ensure it is fully tested

Questions and comments