Posts by: "Richard Anderson"
  • Dec
    09

    Fish Rot from the Head – moving to risk culture

    Below is the text of a speech I recently gave at a private dinner, where I was exploring the future of risk management – as you might guess, I am focussing on risk culture. If you would like to join me on this exploration, do let me know! Fish rot from the head – the establishment view of corporate governance Ladies and Gentlemen, I am delighted to have this opportunity to talk to you this evening. I know that you have been talking [...]
  • Jul
    20

    ALERT: FRC publishes long awaited guidance on culture – missed opportunity

    The Financial Reporting Council (“FRC”) has published its report on culture: Corporate Culture and the Role of the Board – Report of Observations For a very long time I have argued that culture is at the heart of governance and in particular risk management. So nobody could be more delighted than me that the FRC has picked up the challenge of culture in our economy. The references to culture in the Guidance for Directors on internal control and risk management was one of the [...]
  • Mar
    16

    “Fear is key to winning Brexit votes”

    Such was the headline in The Times on 15 March 2016. Apparently Sir Lynton Crosby appeared to be urging both sides to rely on the messages of fear. But for ages now the headlines have told us the the “outers” are “livid” about the so-called “scare stories” being put out by the “inners”. This is little more than a big game of risk management chicken… However, anyone with just a smidgen of risk training would know about the three types of risk articulated by John [...]
  • Feb
    24

    Risk Culture: the elusive barrier to future success

      A great organisational culture is the product of past successes, but is no guarantee of future glories in a changing world. The risk culture is the elusive barrier to future success. Balancing the two is fundamental to long term survival and building resilient value for stakeholders. Organisations are being told to “manage” their risk culture. This sounds fine in theory, but when it comes to taking action, very few organisations are even able to make a start, let alone manage their risk [...]
  • Jan
    25

    Perfect place arrogance

    People often ask me what I think is the single most important outcome of risk management. At the end of the day is has to be the ability of risk managers (which can include plenty of people who are not formally risk managers) to be the disruptive intelligence that pierces perfect place arrogance. In other words, can you speak truth to management? Could you be the little boy in the story of the emperor’s new clothes? Could you burst the bubble – not gratuitously, [...]
  • Jan
    19

    Strategic risk is rising to the top of the agenda

    Risk management is finally coming of age as boards focus increasingly on strategic risk. In part driven by the FRC’s guidance for directors, and in part driven by sheer common sense, directors are looking more at their strategic risks and less at some of the operational risks. This is not to say that OpRisk is not important: it is. But long term sustainability is more likely to be driven by managing the strategic risks that are the basis of creating and protecting long term value. [...]
  • Dec
    01

    Risk management is really simple… Really?

    There is a school of thought that says that risk management is really simple. I happen to disagree. I think risk management is really complicated, but we need to find simple ways of conveying the messages. Sometimes I think that we over simplify it with three by three matrices that really mean nothing at all. We are going to have to find and develop much better presentational methods to enable better discussion of risk in organisations. In the meantime, let’s not think that risk management [...]
  • Nov
    16

    Talking about risk culture

    I have blogged a lot about organisational and risk culture recently, and I have also made available a downloadable version of my recent bolgs on the subject (see here where you will find a couple of documents as free downloads). Anyway, I know not everyone has time to read all of that material, so I thought you might be interested to see a very short video of me talking about [...]
  • Nov
    11

    A risk manifesto

    Ask not what you can do for the board, but rather ask what the board can do for you… We are all attuned to the requests that the board makes of risk professionals, but I was asked recently, what should we be asking for from the board. My response was as follows: In the context that risk management can make a significant difference to the creation of a  sustainable organisation over the long term, I developed a risk manifesto setting out what I [...]
  • Nov
    10

    Two styles of risk management

    On the one hand we see a bunch of organisations who are pursuing risk management because they have to: those that are quoted and are subject to regulation and guidance put out by the FRC and similar organisations around the world. The regulation is getting better and better, and in the case of the FRC is really pretty much world class in my mind. But on the other hand there is an even more interesting bucnh of companies who are typically not subject [...]