Shaking Up the Status Quo: Innovations in Risk Management
Chris de Wolf (Mars) and I got back together in April at the RIMS’16 conference for an overwhelmingly well-received session where we talked about transforming the risk function from a program to a business.
“Shaking up the Status Quo - Innovations in Risk Management” gave us the opportunity to tell the story of how we reinvented risk management - business continuity. Long story short: We were looking for a better way.
I’d founded Lootok after an epiphany about risk management - business continuity: The current means for preparing a company for resiliency and continuity was cookie cutter—follow the standards, fill out the templates, and abracadabra! You have risk management - business continuity management! And the more data you collect, the better the program will be! Buy now!
But here’s the reality of that model: Once the project is over, no one wants to do anything with the recorded data. Most companies’ only goal is to check the risk management - business continuity management box as “Complete,” and satisfy audit purposes and appearances… but won’t actually do much of anything in the long run. Every once in a while, they’d recognize something valuable, but very rarely did anyone do anything with the data.
But what Chris and I did was to transform the risk management department from a checked box to a brand—a brand with products and services and brand awareness. Our creative brand of risk management products and services required a company develop their risk management – business continuity management like they would a develop a business plan, complete with a marketing plan, supply chain management, customer experience, and all the other ingredients required.
Watch the presentation to details about the three (3) steps that can transform your program from a function to brand. tl;dw? Here’s a quick-and-dirty run down:
Step 1: Assess
Start off by inventorying (i.e., counting what’s in the store) all your risk management products and services. Assess it against Lootok’s Demand Model™, Lootok’s Experience Model™, and our Mental Model Communication Approach. The assessment benchmarks the program against the desired end state and gives you the roadmap.
Step 2: Build
There are three (3) parts to running the risk management program. Part 1 is operations—“If it’s worth doing it’s worth measuring.” Part 2 is sales—“Nothing happens until someone sells something to someone.” Part 3 is delivery—“70% of cost and risk is inherit in the design.”
Step 3: Operationalize
Once something works really well, operationalize it—that is, drive the cost down and earn on the investment. When you view risk management as a company, you are constantly investing and operationalizing. The combination ensures appropriate ROI.