Even though I’ve spent a lot of time over the last year talking to clients about risk management, I haven’t covered the topic in this blog other than my post on Risk Friends and Key Risk Indicators. This is especially odd as I’ve come to believe that strategy management and risk management are inextricably linked. I’ll expound on the idea in a future post but I believe that strategy maps should include both objectives and risks, initiatives should be complemented with mitigation plans, and scorecards should include both key risk indicators and key performance indicators.
Given the downturn in the economy, lots of people have started talking about risk management. But just like the long-standing confusion between performance management and budgeting/planning, most people focus on financial and credit risk management. True enterprise risk management includes workforce, customer, and operational risks as well. And it requires communication and collaboration, not just analysis.
As usual, Dibert provides an amusing take:
Scott Adams may have published this comic in 1997 but not much has changed in the intervening decade.