No Risk Management or Poor Risk Management?

Nostrapharmus calls for Good Risk Management Practice in order to satisfy both regulatory demands and business needs ‘At least we tried’ is a phrase unlikely to receive any sympathy when you are held to account for knowing about a risk, but not addressing it appropriately.Especially in an industry where public responsibilities are beyond those of ordinary business ethics, safety is paramount and, what you don’t know is going to hurt you.

As Nostrapharmus says, ‘the minimum requirement has to be an explanation of the actions taken, or not, as the case may be'. This, alongside evidence to support the decisions made, is a start to exercising the principles of Good Risk Management Practice (GRMP). Such principles must maximize the benefits of risk management across the business whilst also ensuring the satisfaction of emergent requirements from the regulators. It is imperative when implementing risk management, to put mechanisms in place to manage the required actions before getting too excited about where the greatest risks exist in the business.

Just some of the payouts in recent years:

Who knows what the total commercial cost was in each case.

It is likely that the impact is still being felt in many of these instances. So, how could risk management have made a difference in these, and other, cases?

Reference:

http://www.wcigroup.com/Nostrapharmus/No%20Risk%20Management%20or%20Poor%20Risk%20Management.pdf