Gareth Byatt talks to Alex Sidorenko about decision making, risk management and cognitive biases

A large part of risk management success depends on the support and commitment from executives, Board members and key stakeholders.

Risk managers should build relationships and join forces with the other managers responsible for performance improvement initiatives, like lean management, quality, safety, environment, security, internal audit or others

Encourage people to share information about risks by reaching out to them and by visiting their workplace regularly

Risk managers need to learn to be proud of their contribution to the overall success of the company.

Most of the risk managers we have interviewed agreed that having a management level Risk Management Committee has a significant positive effect on the overall risk management culture.

It is recommended to discuss risks associated with each decision instead of having risk management as a separate agenda item. After all items on Board’s agenda are risk items.

After all, risk appetite is just a tool to help management make decisions and be transparent to stakeholders when making these decisions.

Risk management is useful document to communicate with external stakeholders such as banks, investors, auditors, regulators, key customers and suppliers.

STEP 4 - TURNING RISK ANALYSIS INTO ACTIONS