The risk management function has been likened to a lighthouse - always on the watch to make sure nothing goes wrong and lighting the way for everyone so they can navigate the safest path.
Innovation is expected and required for any business or function to grow and develop over time. The risk management function is no different, hence risk must embrace innovation.
Effective risk management is like putting together a three course meal. This analogy may sound a little strange but bear with me as I take you through the tips for the chef (manager).
We all think that innovation begins with innovation itself, but that is incorrect. Innovation must begin with the single most important aspect of any part of business and that is accountability.
I am going to list the things we have to do before the Innovation of Risk kicks the bucket! More precisely I am going to list the things that have to happen so that the Risk Manager can kick the bucket in his/her current form and shift to a new form entirely.
Quite simply because when it comes to risk management we somehow seem to have complicated something that has been in existence since the dawn of man, yes since the dawn of man. The day we stood up and first assessed our surroundings we were considering the risks. The risks of being killed by that beast in the wilderness where our only form of mitigation was "fight or flight".