Risk Management, or Management, Failure?

Much recent press has been devoted to the apparent failure of risk management systems in the financial services sector. However, continuing revelations indicate more a failure of management, rather than risk management systems. Managing risk is at the heart of competitive advantage, and is management’s job. As added value services become more complex and associated risk levels increase, delegating responsibilty to the Risk Management team is an understandably attractive option. But understanding risk and managing its consequences is what managers (should[?}) do – and why they are paid more. To do this managers need to be able to recognise and communicate risk, and manage those consequential politics and team issues.

? Are your managers over reliant on the risk management department?

? Do your managers have the soft skills (interpersonal and political) to effectively manage risk?

? Does your organisation have a ‘culture of challenge’

Next Steps

Tags: , , ,

Leave a Reply