Categories
BLOG - Risk For Competitive Advantage

The Five Steps of Risk-Based Decision Making

Excellent summary of the process!

“The Five Steps of Risk-Based Decision Making”, From the American Society of Safety Engineers

Might also consider:

– Defining expected business outcomes (in Step 1)

– Quickly identifying what’s truly unknown (uncertainty) and what’s somewhat known (what can be measured, assigning probabilities to possibilities). I’ve found two streams helps keep moving the decision along (step 2)

– Identifying what others are doing and determining if your “risk-based” process can be used for competitive advantage (i.e. improving profitability, either by adding market value or managing cost).

Don’t forget to take the time to understand others perspectives (and understanding of how they make money) – customers, suppliers, producers, competitors, potential new players.   UNCERTAINTY = OPPORTUNITY

– Dialogue, dialogue, dialogue. No longer is just about the rules and compliance. Navigate, then manage. It’s a negotiation and there is no better time for risk professionals to be part of it. Markets move fast, organizations do not!

 

 

By Gary S Lynch

I am the Founder and CEO of The Risk Project, LLC a risk, uncertainty and opportunity advisory firm. As a management consultant, business developer and market analyst at Booz Allen Hamilton, Gartner Group and Marsh, I was responsible for defining market strategy, commericalizing capabilities, and developing businesses. I've helped dozens of organizations create new revenue streams. I've also held the position of Risk Executive, CISO and Global Leader - Office of Business Continuity at JPMorganChase, Prudential and Prudential Securities.

Throughout my career I worked with senior leadership from startups, academia and government agencies to life sciences, hi-tech and financial institutions. I was a founding member of the US Dept of Commerce's Advisory Committee on Supply Chain Competitiveness, Advisor to the WEF Global Risk Network and Sr. Research Fellow at the RH Smith School of Business, University of Maryland.

I've authored three business risk books and been a featured at the WEF, APEC, WCO, NIST, NACD, AIAG, RIMS, MIT CTL, Robert H. Smith School and the Desautels School of Management/McGill University.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.