The Australian Risk Policy Institute (ARPI) recently issued a stern warning that risk management practices are not effective. Across Government, organisations and society we continue to experience avoidable failures.
ARPI offers a new approach. A focus on strategic risk policy and on networks can help to reframe risk management, at least at the strategic level and for risks with societal implications. See www.arpi.org.au.
RiskIQ supports the ARPI approach but sees the need to do more. Leaders of organisations and projects will, like us, ask: When we abandon the current ineffective, outdated (and often dangerous) traditional risk management processes and tools , what processes and tools do we replace them with? How to we ensure effective governance of risks to complex organisations and projects here and now, in practice?
ARPI is correct. We are not managing risk well enough – and only have ourselves to blame if this continues. However ARPI’s Strategic Risk Policy approach by itself it is not enough. Leaders of organisations and projects also need effective frameworks, methods, processes and tools to deal with the complex, systemic uncertainties they face every day, at every level of management.
See RiskIQ’s Risk Leadership Framework for a modern approach to risk management.
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