Risk : risk maturity and risk managers

30 December, 2011
Patrick Keady

 

 

 

Risk management is about uncertainty that matters, and its worth asking ourselves if it matters that there is such a variation in the personality types of risk managers

 

It seems that the degree to which it matters or not, depends on the risk maturity of your organization.  For example, if risk in your organization is about identifying risks, having a risk register that is dusted off once or twice a year, and underperforming in audits, then your organization’s risk maturity is likely to be undeveloped.  Although evangelist and driver risk managers will be of limited use.

 

Instead, traditional risk managers will help undeveloped organizations move towards formalised risk maturity – where there is basic compliance, good results from audit and good levels of risk awareness.  The traditional risk managers will play their part in instigating and seeing through a wide change programme, as well as introducing a single approach to risk management.

 

Quality of data is the difference between the second and third levels of risk maturity - formalised and established.  Most organizations seem to be heading towards established risk maturity, having consistent processes with good levels of communication and accountability for uncertainty that matters.

 

The evangelist risk managers come into their own in those healthcare organizations that are moving from the established level of risk maturity towards embedded risk maturity where risk drives decision-making processes, and decisions are based on upside as well as downside uncertainty that matters.  In getting to the fourth level, organizations are adept at assessing their exposure to the process, competitive and financial risk.

 

And the driver risk managers that will be best placed to take organizations from embedded risk maturity to the fifth and final optimised risk maturity where risk is embedded in all strategic, operational, performance and financial models.

 

So what about risk maturity in your organsation?  If you would like to share your personal experiences, observations or the results you’ve achieved, please leave your comments and thoughts below.  Why not click the Google +1 icon in the right-hand column and mention this post on Twitter and Facebook?.  If you want to be notified by email when other new articles come up, then enter your email address on the top right-hand side of this page.

 

 

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