Can you afford to ignore good practice when it comes to the risk renewal process?
Christopher Riordan 17 September 2008 09:34:54
“No matter the technology or your DIY prowess in exploiting IT, a Risk Manager that employs poor practices is making crucial business decisions based on shaky foundations.”Frankly, it’s a waste of time doing any kind of data capture if the process employed is unreliable. Worse than guessing, as at least that comes with an obvious health warning! Bad practice promotes a false confidence that can lead to costly assumptions.
“Not much point in seeking competitive edge, working smarter or trying to be pro-active if you are heading in the wrong direction!”
And yet, it would seem many are playing Russian roulette, by doing just that, with activities that are technology naive, labour intensive, error prone and vulnerable to business change. Of course even the best process can output “rubbish”, but a well defined, consistent and coordinated approach will go along way to minimising the risks.
“If accurate, reliable information is an essential component of a coherent risk management strategy, then confidence it how that information has been arrived at must be just as important?”
And if you slip up, in these litigious times, when all and sundry will seize the moment to put the business under the microscope, and the competition capitalise on your exposure. Blaming poor practice will do little for your credibility or win you support when you need it most. So clearly a Risk manager has a duty to establish good practice and provide information that is reliable, other wise…
In the immortal words of Dirty Harry, "You've got to ask yourself one question: ‘Do I feel lucky?’ ‘Well, do ya…?’ "
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