Improving the
Risk Management Practice

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Once routine risk management practices are established in an organization, there is opportunity to assess the risk management implementation and implement improvements. Such opportunities are identified through on-going monitoring and by conducting assessments at periodic checkpoints. Opportunities include improvement to policies, plans, processes, methods, and tools. Implementation of process improvements may lead to revisiting each step in the risk management implementation roadmap.

On-going monitoring by risk management practitioners is the primary indicator of risk management performance. Analyzing planned versus actual variance in Key Performance Indicators can reveal problem areas that should have been proactively dealt with as risks. Conflicting information from disparate sources and dealing with unexpected occurrences are also indicators of a weak risk management practice. Organizations with the capability to perform risk management are problem avoiders. Continually solving problems is a red flag.

At periodic checkpoints Futron will evaluate the effectiveness of the entire risk management practice. Objective evidence is gathered demonstrating that each element of the risk management plan in implemented.

Any practice assessment will certainly identify some areas for improvement. More importantly, the assessment will identify the practice strengths as well. The core team responsible for implementing risk management should celebrate success. In addition teams or individuals that demonstrate commitment to risk management and effectively employ the practice should be recognized and rewarded. Celebrating success further strengthens the risk management culture.