Risk must be at core of strategy
Airmic chief executive John Hurrell delivered a powerful message about risk management at the latest “Tomorrow’s Value” lecture. Hurrell’s lecture – “From Ruin to Resilience” – to 70 leading professionals discussed how risk and related issues must be at the core of business strategy.
He said that it often made the difference between business success and failure, against a backdrop of high-profile risk-management failures across the global economy. He added that when things don’t go to plan, a risk is almost always known by someone in the organisation, but all too often this isn’t communicated, understood or acted upon, doing little to build the “resilience” that prevents “ruin”.
Hurrell also outlined the findings of Airmic’s “Roads to Ruin” report undertaken by Cass Business School.
It showed that 18 of the most catastrophic failures in risk management over the past decade shared the same seven key points of failure in varying degrees, which can broadly be described as failing to manage the “risk management glass ceiling”.
During his closing address, CIMA chief executive Charles Tilley said organisations must avoid over-sophisticated risk systems that prevent the board from identifying and dealing with the most crucial risks.
The “Tomorrow’s Value” series of lectures are organised jointly by CIMA and Tomorrow’s Company. Videos of previous events can be found at: www.cimaglobal.com/tomorrowsvalue
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