Where risk management meets strategy

A reasonable amount of good risk management is better than no risk management, but too much poor risk management hurts an organization by encumbering resources, slowing decision processes and giving leaders a false sense of security. (Photo: Shutterstock.com)

Recently, I spent half a day with a group of corporate directors and C-suite executives, discussing the intersection of risk management and strategy. We talked about big risks facing all organizations, sector-specific risks, and risks related to domestic and international security, the financial meltdown in Greece, cyber threats, natural catastrophes such as the drought in California, and the fight for talent, among other topics.

This led to a robust debate concerning the value of risk management in dealing with real life. The general conclusion: A reasonable amount of good risk management is better than no risk management, but too much poor risk management hurts an organization by encumbering resources, slowing decision processes and giving leaders—and the board and other stakeholders—a false sense of security. I’m confident this will sound familiar to many risk management professionals.