BUSINESS RISK ASSESSMENTS NEED TO BE FED

BUSINESS RISK ASSESSMENTS NEED TO BE FED

Perrin Carey

7 May 2020, 08:30:00

Whether or not you work in a regulated sector, a business risk assessment is incredibly useful to inform decision-making, enhance governance, encourage growth and support sustainability and adaptability to change, does yours?

I’ve seen some aesthetically beautiful Business Risk Assessments recently!

Of course, only someone who’s into BRAs would actually put this is writing, but that’s Perrin.

Trouble is, whilst they are lovely to look at, rather like this water wheel that's currently static due to no flow of water, they are listless, almost lifeless.

They are great to look at, but lack any functionality,
They are neither fed, nor feed,
They struggle to have credibility because they have no validity,
They, at best, represent a moment in time, but are immediately out of date, and
They represent a cyclical process, but don’t actually revolve.

Regulators require a BRA, especially if you are obligated to comply with your jurisdiction’s anti financial crime legislation, so you have to have one.

Thing is,

Why spend all that time creating a master piece that

Does not perform any function,
Does not inform your daily decision making,
Does not contain clear reference and reflection points,
Does not move with time, and
Does not actually inform your risk management.

Risk and opportunity are not mutually exclusive, they come as a pair, so if this is true...

...by not creating a flexible, valid and cyclical risk management assessment you are also forgoing opportunity, and

Therefore growth, sustainability, longevity and adaptability to change.