Risk transformation

A growing area of importance in business and in public sector. Includes activity within the financial services post 20th century financial crisis.

Definition

Risk Transformation is defined by Sandeep Sander , SanderMap. Risk Transformation is about how to mitigate risk and in parallel develop competitive advantages. Change and transformation is key - first to combat risk and secondly to differentiate and create solutions for the benefits of clients/users.

Risk is seen in many aspects; financial risk, security/safety related risks, uncertainty and risk through action or lack of action.

Roles

Risk Transformation is relevant in many areas i.e.;

• Regulatory risks, i.e compliance or lack of compliance
• Risk related to management and operations
• Organisational risk
• Project management risk;
• Systems implementation; technical support risks
• Strategy risk; Risk related to strategy development and execution - and lack of strategy
• Functional risks, i.e within sales/marketing, logistics, production, finance.

Security/safety risks - including attacks related to terror, criminals and attacks on countries and organisations from other nations.

It is essential to develop the needed competences in a risk function and throughout the entire organisation.

References

Key article by McKinsey

The Risk-driven Business Model: Four Questions that Will Define Your Company , by Professor Serguei Netessine and Professor Karan Girotra

Risk Transformation includes: - analysis - development of possible solutions - Decisions - Implementation - control, update, continuous improvements

See also EY article: http://www.ey.com/gl/en/services/advisory/advisory---risk-transformation

Article about an important Risk Transformation event . Lars Findsen, highly respected Director of the Danish Defence Intelligence Service (FE) was one of key note speakers.