Looking at Risk through a Telescope, Reading Glasses or a Wide Angle Lens

Risk managers need to be looking at the risks that may nibble away at the firm, risks that may deliver swift killing blows as well as risks that will slowly strangle the firm.

Risk managers need to use the Telescope to look for risks that are remote.  The Emerging Risks.  Those risks may be tiny specks in the far distance.  The risk manager may need to use their imagination to see what harm those tiny specs might do.  They need to arrange things appropriately to prepare for the day when the speck might turn into a real threat.  The firms who use the telescope to view those risks will be able to take the actions far in advance that will make their eventual defense against the risk more effective and economical.

Risk managers also need to use the Reading Glasses to look at the fine details of the things that go by each and every day.  By a careful detailed review, the risk manager may find cracks in the structure or activity that appeared very sturdy up until then.  They can take actions to patch those cracks and to look for alternatives.

Risk managers should also look with a wide angle lens for risks coming at them.  The wide angle lens allows them to see risks coming at them from every direction.  When the risk manager crosses the one way street, they will often quickly look in the “wrong” direction to make sure that nothing is coming from that direction either.  They know that risk is not bound by any rules.  In fact, risk is often most dangerous when it moves directly in the opposite direction that the rules would have you think to look.

Risk managers who have built up processes with a fixed focus that look in only the directions that are required will find that the largest risks are not going to congregate in the spots where they have focused.

Risks will move out of those bright spots where the risk managers are focusing into the dark.  And they will move closer and closer and get larger and larger as long as no one looks at them.

Explore posts in the same categories: Enterprise Risk Management, Risk and Light


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One Comment on “Looking at Risk through a Telescope, Reading Glasses or a Wide Angle Lens”

  1. riskviews Says:

    Wow. I hit publish after just typing the title. Apologies to anyone who loaded up the blank page.

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