This is part 3 of our video series on "Difficulties in Engaging Staff in Risk Management". This video covers how you can use a personal experience, like going for an annual health check up, to engage your staff and explain the Risk and Control Self Assessment process.
Hi, I'm David Tattam, Director of Research and Training at the Protecht Group.
One of the common issues we find in risk management is the difficulty in engaging our staff in risk management, and that's critically important because they are the ones that are supposed to be doing it. One of the ways that we can help overcome that lack of engagement is to make risk management real for them. One of the ways of doing that is to talk about tisk management in their personal lives, so it's relatable.
Today, we're going to talk about risk management in your personal life. Step number one, which is talking about your health risk. Now, one of the key things in managing your health risk is to go for a doctors check-up or health check maybe once a year. Let's talk about that process because this process in business is what we call risk control self-assessment.
So, let's go through that process.
Step number one is to identify your life objectives of why you're going to the doctor. I'd like to think it's to live a long and happy pain free healthy life.
Number two is to identify what critical functions in our body need to be working well in order to achieve that objective. Now, I'm no medical person, but I'm going to guess vital organs, our heart, our liver, our skin, skeleton, blood, and so on.
Step number three is to say what risks exist that could stop one or more of those critical functions, heart and so on, from working effectively? Now, one of them may be heart disease caused by cholesterol as an example, and we would have identification of cholesterol risk.
Number four is what is the level of that risk? We would do a risk assessment, and let's assume that that level of that risk is high. We then assess that and then say, are we happy with that, and for that we use the risk appetite. We'll assume it's outside of risk appetite.
This then leads us to a conclusion that we have an issue, and that issue is obviously excessive cholesterol.
Finally, we are there to remediate, which is actions. What actions are we required to put in place so that we manage that risk better going forward?
Those seven steps we went through applied to your health risk in your personal life are exactly the same seven steps that we would apply in a business context. The only difference is we would start with the business objectives and flow it through that way.
Please check out our other videos and blogs on making Risk Management in your personal life and business life more relatable. So, see you later and until next time, take care.
See how you can take your risk assessment process further by learning more about the different levels of risk and how you can leverage each one to get the most value out of your framework. Click below to register to our live webinar:
Author of 'A Short Guide to Operational Risk', David Tattam is an internationally recognised specialist in all facets of risk management, particularly at the enterprise level. His career includes many years working with PwC, as well as two Australian banks. His achievements include the creation of the Middle Office (Risk Management Department) for The Industrial Bank of Japan in Australia and the complete implementation of all Australian operations, systems, procedures and controls for Westdeutsche Landesbank (WestLB).