Behaviours are the catalyst of the innovation of risk

For a long while now I have been considering what makes the innovation of risk more evident in some people than in others.  At first I was like everyone else and thought it related to the technical knowledge of the person.  Then, I thought it has to relate to the years experience they have had within risk management.  But, neither of these actually truly answered the question as the people who have these abilities do not seem to want to innovate the risk profession.

So, over the last week I have considered the risk profession from the view of the person in the profession and considering the view of those outside the profession.

What have I therefore determined to be the key things can assist in the innovation of risk?

For me the key aspect is behaviour.  You can think you have all the technical skills in the world, and be considered the expert in your field, but that does not make you the innovator.  In actual fact, being that type of person, actually can limit your ability to think more broadly.  To be a true innovator of risk you need to leverage as many people around you as you can.  Bring them into the conversation, rather than “telling” them what you think.  Consider their views, thoughts and experiences.  To truly innovate risk you need to consider the practical elements of the customer, but also scan the horizon for the key pieces of information that will grow into a new idea or concept.

The past is but a measure of what has happened, and is only a piece of information for what will happen.  To truly innovate risk you have to open your mind to the future possibilities.  You have to consider multiple possible future outcomes, and not limit yourself to a single possible future.

The behaviour of the individual is your best guide to how much they will participate in the innovation of risk.

I recently made the following comment:

The world is full of endless possibilities, why limit yourself to one answer to a question?


Scott North has extensive experience in enterprise risk management, internal audit, operational risk and compliance, risk strategy, scenario planning, technology risk, technology business analysis, systems design, financial accounting, and management accounting. Scott is a Fellow of the Australian Institute of Chartered Accountants with a Masters Degree from the University of Melbourne in Business and Information Technology. Scott is also a Fellow of the University of Melbourne.

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