Monday, August 11, 2008

Risk Therapy 102

In the article Risk Therapy 101, we explored the reasons why Risk Management is seen as a business imperative in higher circles and yet it rarely translates to effective activity within many operations. In Risk Therapy 102 we consider ways to address the gap.
Firstly, let’s identify those who (reportedly) take the subject seriously, whether or not they actually manage their risks effectively:

  1. Business leaders
  2. Shareholders
  3. Insurers
  4. Brokers
  5. Reinsurers
  6. Government
  7. Regulators
  8. Auditors
  9. Risk Managers
  10. Bankers
  11. Engineers
  12. Manufacturers of high risk products
  13. Business entities offering high risk services
  14. Businesses prone to litigiousness
  15. Nuclear technologists
  16. Space technologists
  17. Deep water technologists
  18. Disease / bio-hazard technologists
  19. Anyone who trades with their own name

I may have missed some categories, but do you see yourself or your business on the list? How does everyone else take the first step towards effective Risk Management then, after denial that is?

The initial answer is still, an internal choice and commitment. First prize is still to consult with external professionals.

Since writing Risk Therapy 101, we have created a discrete self-check system that allows you to quickly assess the Risk Health of any sized business, in any industry, in any country. In two hours, you can privately identify strengths and weaknesses in Risk Management structures or procedures, inherent strategic issues, problems and opportunities in your areas of expertise, key dependencies and some specialised risk identification.

System output is both graphic and written. It can and should be audited. Thereafter, it can be presented to the Board of Directors for their consideration and approval. Of course, you may find that you still need more help, but at least you will know the Risk Condition of your business, from an independent perspective, without have to reveal this information externally.

For more information go to or our new Risk Therapy Website This is the second in a series of articles. Further exploration of this new mindset will follow in Risk Therapy 103.

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