Risk Management

Know Why Risk Management Is a Team Effort

Risk management has a lot of benefits. However, it can be abstract if you fail to work with your teams to implement changes required to deliver those benefits. While setting up new risk management processes, you must get the right people involved. Forming a risk management team to handle the risks successfully is similar to forming a football team. In this article at Forbes, Matt Kunkel explains why you must have a ‘sports’ mindset when approaching risk management.

Risk Management, A Team Approach

“Both involve leaders making decisions focused on the long-term health and success of the team, specific groups handling day-to-day operations and tactical activities, and ultimately, someone specific in charge of handling finances,” explains Matt. The picture of an entire football team — an owner and players in various positions — reflects how risk can be dealt with within an organization.

An Owner

The owner – the CEO, and the board – must set the tone for a healthy culture. CEOs and board have to build risk management processes by hiring the right leaders to foster and enable culture with clearly aligned goals.

Head Coach

The head coach is responsible for the creation and execution of the team’s strategy. In an organization, C-suite members are in charge of spreading the risk management strategy throughout the organization and instill the discipline needed to execute it.

Quarterback

Here, the director often plays the role of the risk management quarterback. They identify the opportunities and risks associated with the business. They also gain a thorough understanding of how risks are evolving in real-time.

Offensive Line

The information security team takes up this role of the offensive line by continuously monitoring the company’s risk profile. They also implement processes to manage the risks. Without an information security team, proactively looking to prevent risk, a company would be under tremendous risk.

General Managers

This responsibility is often taken up by the VPs who continually work towards acquiring new members for the organization’s success.

Rounding the Team

Business unit leaders, IT compliance, and other managers — whether from legal, finance, IT, or procurement — define acceptable levels of risk differently based on their unique perspectives.

To read the original article, click on https://www.forbes.com/sites/forbestechcouncil/2020/09/21/why-risk-management-is-a-team-sport/#76fb19822445

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