What if your risk management efforts are perfect - well if not perfect, then operating pretty well?
You've identified the threats and opportunities, prioritised the list so that you can focus your resources appropriately, identified actions to promote or mitigate the risk, as well as determining action owners and completion dates.
Job's done, right?
Aside from the fact that you need to continuously monitor and review your risk environment and maintain regular communications on changing or emerging risks with key stakeholders, there is one other question that should also be on every managers mind.
Do we have the necessary capability to manage the change, innovation, transformation and execution needed as a result of the risks we are addressing?
The operating environment for most firms has become increasingly complex in recent years. Change used to be something that happened periodically and tended to be incremental rather than a step change.
Today, change truly is the only constant. And it's not just big data and analytics or cybersecurity - think artificial intelligence, nano-technology, robotics, bio-technology, quantum computing, disruptive market entrants, agile competitors, flexible labour models, fickle consumers and legislation unable to keep up with all the changes.
We are now in the early stages of the 4th Industrial Revolution. How do you keep up, let alone get ahead of the curve?
Key to solving this dilemma is how an organisation manages its capability development program.
Recently, I have had the pleasure of working with Dr Paul Guignard of the Capability Institute to deliver Capability Development & Transformation workshops which focus on both performance and risk in organisations.
This is achieved through a focus on individual capability, team capability and organisational capability - in Paul's words 'magnifying the impact of the human mind'.
Your business may be great at operational functions, have a stellar marketing team and have a robust supply chain. But what about your governance or project management skills? What about the development and maintenance of the desired culture? Ethics? People safety? Workplace relations?
An organisation needs to perform in all these areas and more in order to just survive, let alone thrive. The good news is that most of the answers reside in your people - they just need to be unleashed!