“When it comes to ensuring risk management is supporting profitability, delegate ownership to a team member. This should be someone in the management team who has the ability and respect to step back and be the devil’s advocate. Operations directors work well. It’s best not to go with an MD or CEO as they can have the tendency to be over-confident about the accuracy of forecasts, and at times, over-optimistic about the ability to manage the risks.
It’s about having accountability for identifying things that go wrong, being prepared to ask the awkward questions and challenge pre-existing assumptions made.
Ultimately, risk management is most effective when it is a continuous and disciplined process that becomes business as usual. When utilized in a proactive way, it avoids the need for time-consuming and costly crisis management, instead leading to greater resilience, stronger reputation, more effective business outcomes and ultimately, greater profitability.” – Val Jones, CEO and co-owner, Risk Decisions , excerpted from his article, “How to improve profitability through risk management” at FreshBusinessThinking.com, click here to read the article in its entirety. [end]
Insightful and Well said! PMO Advisory offers courses throughout the year designed for project professionals interested in Portfolio (PfMP), Program (PgMP), Project (PMP & CAPM) Risk (PMI-RMP) Management, and Agile (PMI-ACP) certifications.
