What if there are no clocks?
RISKVIEWS recently told someone that the idea of a Risk Control Cycle was quite simple. In fact, it is just as simple as making an appointment and keeping it.
But what if you are in a culture that has no clocks?
Imagine how difficult the conversation might be about an appointment for 9:25 tomorrow morning.
That is the situation for companies who want to learn about adopting a risk control cycle who have no tradition of measuring risk.
The companies who have dutifully followed a regulatory imperative to install a capital model may think that they have a risk measurement system. But that system is like a clock that they only look at once per month. Not very helpful for making and keeping appointments.
Risk control needs to be done with risk measures that are available frequently. That probably will mean that the risk measure that is most useful for risk control might not be as spectacularly accurate as a capital model. The risk control process needs a quick measure of risk that can be available every week or at least every month. Information at the speed of your business decision making process.
But none of us are really in a culture where there are no clocks. Instead, we are in cultures where we choose not to put any clocks up on the walls. We choose not to set times for our appointments.
I found that if you have a goal, that you might not reach it. But if you don’t have one, then you are never disappointed. And I gotta tell ya… it feels phenomenal.
from the movie Dodgeball