'Risk Management is Dead, Long Live Risk Management'

On the anniversary of the collapse of Lehman Brothers, the Business Continuity Institute has published 'Risk Management is Dead, Long Live Risk Management', a discussion paper on how risk oversight and transparency can be improved for non-executive directors and shareholders through applying business continuity management practices.

In the paper, the BCI argues that traditional approaches to risk management have become too complex thereby undermining the value that a broadly-balanced board can bring to a company.

There is a need for a Corporate Impact Policy that considers the dependencies and vulnerabilities of a business around the ‘seven areas of disruptive impact’ which include reputation, finance, supply chain and people.

If used effectively, business continuity management helps the board focus on some key questions:
* The company’s business and operating model
* Key value creating products and services
* Key dependencies such as critical assets and processes
* How the company will respond to a loss or threat to any of the above
* What the main threats are today and what is on the horizon
* Evidence that the resulting business continuity plans will work in practice.

The paper is available on the BCI’s website. Registration is required before downloading the paper as a PDF.

•Date: 15th Sept 2009• Region: UK/World •Type: Article •Topic: BC general
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