Risk Aware Working
An investment firm had made a bad overseas judgement, which
had resulted in a change in senior management and a regulatory fine. A few
years later they were still not sure the appropriate risk awareness was in
place. The problem was perceived to be that there was no one view held across
the firm, some being over-cautious for fear of replicating the investment
problem again and other newer staff not understanding there had ever been an
BP&E Global were approached because the CRO and FD had
attended the Beyond the Risk Register – behavioural risk briefing and saw great
possibilities with embedding that learning in their business.
We proposed an embedding risk-aware working programme:
1: Interview based research to understand
people’s current perceptions
2: Design of a specific workshop
programme with bespoke case studies to be rolled out throughout the
3: Identification and running of a test
workshop with an ‘early adopter’ group, with feedback
4: Modification and rollout to 100 key
5: Workshop/briefing to the
6: Briefing and summary of results
to the Risk Committee
The interviews brought up several themes, including
predominantly a fear of recreating the problem that had lost the firm money and
created regulatory censure.
We included the themes in our early adopter workshop
alongside some real case studies for them to work through in the session so
that they created a sensible way forward in line with the CRO’s thinking and
the Board’s risk appetite. Following the workshop, BP&E Global reviewed
feedback and slightly adjusted the case studies before rolling the workshop out
to 100 key members of staff and the executive.
The CRO was delighted with how insightful the interviews had
been and said that even if they got no further results this alone was worth the
programme. The insights continued throughout the process, with even the most
cynical stopping and thinking in a more risk-aware way due to the workshops.
Since completing their work with BP&E Global everything
has changed at the firm and continues to evolve positively.
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