I do so by taking data beyond the risk program and to the business decision. I initiate a dialogue that applies to a tangible business situation to better understand the decision maker’s expected outcomes, market value, role in that industry’s value chain, activities that matter most, and level of understanding of uncertainty.

The goal is to establish an unbiased view of risk, understand what decisions need further insight, quantify the potential risk investment, and assess the impact to overall profitability. What are the relevant decisions that require a greater understanding of uncertainty? What risk data and methods would best support these decisions? Does a greater understanding of uncertainty drive a pricing premium or create a revenue generating or growth opportunity? Does the investment in risk capabilities and/or competencies contribute or detract from the operational effectiveness or performance?

Unlike the traditional risk management program-based strategy, this approach requires navigation; nimbleness, willingness and sense of urgency to incorporate risk and uncertainty into a situation, scenario, and critical business decision. The concept of managing risk is often too broad, operationally focused and seldom relevant to a critical value or growth decision. It is also an inefficient allocation of the risk investment; technology, processes and talent.