Tag Archives: risk appetite

Get ready to fail

Get Ready to Fail

Scott Edinger, Founder of Edinger Consulting, says that everyone fails at one point or another. The important thing to ask yourself is, “How well do I handle setbacks – personally and professionally? Edinger has three tips for getting back on track.

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How culture determines your appetite for risk

How Culture Determines Your Appetite for Risk

The greater the control you have over risk, the more finely you can judge the risk, and the more money you can make. But, how much control do you have – can you have?

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Permission to fail at risk management

Permission to Fail

The most creative thinkers may not be the best choices for high organizational rank — in fact; there is often a conflict between the intuitive leaps that underlie attractive risks and the meticulous attention to process necessary for a large organization to remain organized. An important function of a risk manager is to give permission to fail, which is the only way an organization can succeed.

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Managing risks means managing arguments

Analytics

The words “risk management” usually evoke less subjective, more data-driven pursuits. But data and objectivity can only get you so far. To navigate unquantifiable hazards, your risk management team must make judgment calls – calls that are in jeopardy if all of the team’s viewpoints aren’t considered.

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Pay people to avoid risky behavior

What’s Your Risk Attitude? (And How Does It Affect Your Company?)

How can a CEO influence staff to do the right thing consistently? Safeway has created an environment where its employees are given incentives for managing risk – being risk managers.

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Risk management: A beekeeper’s perspective on risk

A Beekeeper’s Perspective on Risk

Companies differ enough from hives that we’ll probably never be able to do without regulation. Managing for practical scale, long-term success, distributed decision making, diversity and least worst outcomes may be the best hope for keeping organizations healthy.

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Before you take a risk, lay out the logic

Before You Take a Risk, Lay Out the Logic

Risk management predicated on a mix of standardized risk tracking and cultural norms falls short. The only way for risky behavior to create value is if it is logically and precisely directed.

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Your judgment of risk is compromised

Holiday analytics

In the past decade, there have been numerous examples of organizations being toppled by a slow progression of risks that add up to big trouble. The reason, according to Dylan Evans, is that people have difficulty dealing with small differences in probability. The key trusting you risk management to analytics, not gut feeling.

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Make everyone a risk manager

Make Everyone a Risk Manager

The University of California has a unique risk management strategy: The Chief Risk Officer gives employees organization wide the tools to manage their own risks. Over the last six years, the program has saved the university more than $500 million.

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Warning signs of an unhealthy risk appetite

Warning  Signs of an Unhealthy Appetite for Risk

Carol Dweck has researched people’s behavior. She says that business leaders who take unusual and unwise risks often share what she calls a “fixed” rather than “growth” mindset. Those with a fixed mindset think they’re infallible and want to show that they’re superior. This mindset can result in a skewed appetite for risk.

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