Commercial Risk, November 21, 2023
Risk managers need to think more commercially and should consider relaxing some controls to create more value for their businesses, according to experts taking part in a Riskonnect webinar.
The speakers considered whether some risk managers are overly mitigating risk when a holistic approach would lead executives to view risk management as a value-added activity instead of just compliance.
“Risk decisions that are made in a narrow sense, with mitigation as the pur and only forefront of those decisions, can sometimes have suboptimal outcomes, and sometimes result in missed opportunities fort he company,” said Scott Fenstermaker, head of digital marketing at risk management software firm Riskonnect.
Jason Mefford, a risk management consultant and trainer, said most risk managers are “mitigation minded” and feel the need to control. But he said that overly tight controls make it harder for a business to make money. As a result, senior management view risk managers as “restrictors” that stop them from doing business, said Mefford. “When that happens, the whole value that risk management adds is questioned and you start to get issues with executives,” he said.
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