"Risk Management is Broken!"
I cannot count the number of times I have heard or read that Risk Management is broken, and the number of times I've then asked why and how it is broken. Invariably the answer, distilled to the most basic elements, is that Risk Managers have not adopted MY view of what Risk should be, and the view (and associated consulting) that I am selling.
The contrary view is that Risk Management is a discipline that is most effective when tailored to the needs and capabilities of the enterprise, and that is communicating the information needed to enhance decision-making. Where Risk Management is not assisting with improving decision-making, then it is not as effective as it could be.
And it is arguable that many, possibly most, Risk Management functions, and many Risk Managers, are not supporting more effective decision-making. That's not the same as "Risk Management is broken".
Therefore, while those functions may be "broken", it is not right to extrapolate such a status across all Risk Management.
There is hope. Most Risk Managers that I have met actually want to support and enable improved decision-making. So instead of saying "Risk Management is Broken", maybe we should be focusing on how Risk Management can improve decision-making.
Thoughts?
