Innovation of Risk Book Blog: "The booger on your face"

I have been in risk management for almost 15 years. I have been taught (and somewhat trained) to focus on the numbers. I was "told" that risk is about "getting to yes", through making decisions based on data. That to be the intelligent and the expected "risk professional", that I should focus on the metrics. I watched, including myself, as leaders in risk rattled off risk appetite metrics and talked about risk registers. We detailed the level of inherent risk, consequence and likelihood, and turned this into numbers. All with a focus on the efficiency and effectiveness of risks and controls.

Having been the ultimate person responsible for risk and compliance for the last 5 years, I understand that risk is about people; people being customers, employees, and community.

"People Over Profit: Break the System, Live with Purpose, Be More Successful" by Dale Partridge, provides key thinking that needs to be a part of the modern risk professional.

Why are people so important to risk management?

History demonstrates that as companies grow, they often begin making subtle changes and deviations to accommodate that growth. Their organizational gazes shift from honesty and quality to efficiency and quantity.

The focus of risk management has always been on understanding the risk, documenting the potential impacts, addressing the risk through establishing controls, and then measure, measure and measure.

This in itself makes perfect sense, but what gets lost is the importance of the human element. The ability to focus attention and intention on honesty and quality of the response to the risk.

Most importantly, we work through risk assessments to focus on the most effective and efficient controls. However, this "noble goal" can actually cause the risk professional to not identify and support the human elements of managing risk.

The Efficient Era is often driven by consumers thirsty for breakneck convenience at an ever-cheaper price. As we’ve seen, organizational compromises often result from giving customers what they want.

We are no different in our role as risk professionals. We want to help support our businesses in being more effective and efficient, but now is the most important time we should focus not on whether we can, but whether we should manage a risk in a certain way.

Just because you can, doesn’t mean you should. Or just because it’s smart, doesn’t mean it’s right.

What should we focus on?

Dale Partridge outlines "seven core beliefs shared by those focused on their core vision and impervious to compromise",

People Matter
Truth Wins
Transparency Frees
Authenticity Attracts
Quality Speaks
Generosity Returns
Courage Sustains

In risk these seven core beliefs are the foundation for risk management.

For instance, "people matter" relates to team members, customers and vendors. A key aspect of "people matter" is doing things with "eyes wide open". Those that have worked with me will know that I have said for years that the role of risk management is to ensure decisions are made with eyes wide open.

Most importantly risk is about ensuring the customer is at the forefront of everything we do. The role of risk is to bring out that customer perspective through transparency of customer feedback (i.e. complaints) and driving an authentic conversation with the customer. I constantly reflect to people that it is not about "being perfect" or "looking good", but rather it is about being authentic and being good.

Courage is something that every risk role must drive; even through challenging and difficult times. Many times in my career I have had to raise my perspective contrary to others. I have often described this as, I am not here to be liked but to be respected. But what is even more important, is the role of risk to give voice and opportunity to everyone. In my role, I constantly call out that every single person in the organisation is managing risk, and we need to hear from every voice. Essentially, "call it out, raise the issue".

You can, and should, apply these seven core beliefs to the risk management process.

The booger on your face...

When writing this post, or any post, I know that I am flawed and some of those flaws have been with me my whole life.

Since I was young I have suffered from anxiety. I have struggled in the mornings, particularly Monday morning, or when the level of stress increases due to some pending meeting or presentation. Very often it means I isolate myself or "go quiet". I work a lot, and I can be very intense at times when it comes to delivering. I have worked on techniques and approaches to help me get through my day, but ultimately I am not perfect.

But I understand that to grow and be authentic, I must focus on these same seven core beliefs, both as a person and working in risk management.

Ignoring the reality of the role of risk management, draws more attention to what we do, how we do it, and why we do it.

For many years the lessons I learnt to be a "good risk manager" about data and numbers were valuable, but they were an incomplete and imperfect picture. "People Over Profit: Break the System, Live with Purpose, Be More Successful" by Dale Partridge, provides key thinking for the modern risk professional so we don't ignore that booger on our face.