Km World09 Risk Management

risk management 101measuring, managing & monitoring risk:a km approachkmworld09
dave.pollard@gmail.com

why should km care about risk?
“The purpose of knowledge management is to provide support throughout the organization for improved:
decision making [strategies, risk management and resource allocation],
[conversation, collaboration] and innovation
“This is achieved through the [enablement] of human intuition and experience…”
:: definition of Dave Snowden [and Dave Pollard]

the purposes of risk management
(stuff that keeps
executives
awake at night)
(= ‘problems’ management
is prepared to invest in)

internal risks
FRAUD
REPUTATION CRISIS
LITIGATION
GOVERNANCE FAILURE
SUPPLY COST/INTERRUPTION
COMPLIANCE FAILURE
Severity ($)
MARKET SHIFTS
SECURITY FAILURE
DEBT COST/AVAILABILITY
SYSTEM FAILURE
COMPETITIVE THREATS
LABOUR DISRUPTION
INSURANCE COST/AVAILABILITY
Likelihood (%)

external risks

the coso model

understand the risk environment

set risk management objectives

identify possible risk events

assess risk likelihoods and consequences

decide on risk responses

AVOID
SHARE
risk response strategies
ADAPT
Consequence ($)
REDUCE
ACCEPT
Likelihood (%)

institute controls & other responses; communicate & monitor

risk and complexity: challenges

risk management action plan for knowledge management leaders

further learning: resources
the coso model: exec summary:
http://www.coso.org/Publications/ERM/COSO_ERM_ExecutiveSummary.pdf
the coso model: full publication ($75):
http://www.coso.org/guidance.htm
davos: external risks:
http://www.weforum.org/en/initiatives/globalrisk/Reports/index.htm
new challenges in rm & sustainability:
http://www.accountingforsustainability.org/files/pdf/CICA%20-%20A%20Holistic%20Approach%20Report.pdf
dave.pollard@gmail.com