7 Summary of Session 8
The next video covers good practice in risk management.
Transcript: Video 6 Good practice in risk management
Now look at how good risk management can add value.
Transcript: Video 7 How good risk management can add value
The main learning points that have been covered in this session are:
- the variety of risk management specialisms
- appreciating which of these specialisms may be appropriate for you currently or in your future career.
Transcript: Video 8 Risk management inspiration
Well done for completing the course! Now look at what you have learned overall from this badged course on risk management.
Risk management is important. It protects assets and adds value by making sure risk is taken in a conscious, competent way and in places where risk taking is rewarded – in other words it helps people make better decisions.
In procedural terms risk management is simple: we set targets (risk appetite), we identify risks, treat them and then review the outputs – then repeat. But risk is more than a process. We know this because incidents happen frequently at big firms who are excellent at following processes.
So why is this? Firstly it is because risk management is not just a process. Organisations are designed by, run by and governed by people. So for risk management to succeed it needs to involve people and help them to manage the risks they face.
Secondly risk management, even when done well, rarely means that the risk can no longer happen. Instead it means that the risk is less likely to happen or will have a lower impact – it improves the chances of things going right (or reduces the chances of things going wrong) but it rarely removes the risk completely. It is for this reason that managing risk is an ongoing activity, not a one-off event.
Finally risk management is a verb – a doing thing. Risk management delivers no value if no action is taken. These actions may be specific one off activities; they may be ongoing controls to reduce risk (providing they work!); it may be checking actions and controls are effective or using incident information to learn from risks that have happened. In all cases it is about doing something.
Transcript: Video 19 Last words
We hope that you have found this course useful and that it will help you take action to manage risks, to make better decisions and to achieve your objectives.