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Km World09 Risk Management

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Nov. 2009 presentation to KMWorld San Jose conference on how an understanding of risk management can benefit KM leaders

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Km World09 Risk Management

  1. 1. risk management 101measuring, managing & monitoring risk:a km approachkmworld09<br />dave.pollard@gmail.com<br />
  2. 2. why should km care about risk?<br />“The purpose of knowledge management is to provide support throughout the organization for improved:<br />decision making [strategies, risk management and resource allocation],<br />[conversation, collaboration] and innovation <br />“This is achieved through the [enablement] of human intuition and experience…”<br />:: definition of Dave Snowden [and Dave Pollard]<br />
  3. 3. the purposes of risk management<br />(stuff that keeps<br />executives<br />awake at night)<br />(= ‘problems’ management<br />is prepared to invest in)<br />
  4. 4. internal risks<br />FRAUD<br />REPUTATION CRISIS<br />LITIGATION<br />GOVERNANCE FAILURE<br />SUPPLY COST/INTERRUPTION<br />COMPLIANCE FAILURE<br />Severity ($)<br />MARKET SHIFTS<br />SECURITY FAILURE<br />DEBT COST/AVAILABILITY<br />SYSTEM FAILURE<br />COMPETITIVE THREATS<br />LABOUR DISRUPTION<br />INSURANCE COST/AVAILABILITY<br />Likelihood (%)<br />
  5. 5. external risks<br />
  6. 6. the coso model<br />
  7. 7. understand the risk environment<br />
  8. 8. set risk management objectives<br />
  9. 9. identify possible risk events<br />
  10. 10. assess risk likelihoods and consequences<br />
  11. 11. decide on risk responses<br />
  12. 12. AVOID<br />SHARE<br />risk response strategies<br />ADAPT<br />Consequence ($)<br />REDUCE<br />ACCEPT<br />Likelihood (%)<br />
  13. 13. institute controls & other responses; communicate & monitor<br />
  14. 14. risk and complexity: challenges<br />
  15. 15.
  16. 16. risk management action plan for knowledge management leaders<br />
  17. 17. further learning: resources<br />the coso model: exec summary:<br />http://www.coso.org/Publications/ERM/COSO_ERM_ExecutiveSummary.pdf<br />the coso model: full publication ($75): <br />http://www.coso.org/guidance.htm<br />davos: external risks: <br />http://www.weforum.org/en/initiatives/globalrisk/Reports/index.htm<br />new challenges in rm & sustainability: <br />http://www.accountingforsustainability.org/files/pdf/CICA%20-%20A%20Holistic%20Approach%20Report.pdf<br />dave.pollard@gmail.com<br />

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