You're a risk manager facing conflicting priorities. How can you innovate while keeping risks in check?

To innovate while managing competing priorities and keeping risks under control, you should: • Understand Risk Fundamentals: 1. Identify and evaluate all potential risks using risk management frameworks. 2. Prioritize hazards based on their importance and likelihood. • Innovate within risk boundaries. 1. Create a culture of managed risk-taking by establishing explicit risk tolerance levels. 2. Use iterative procedures, such as Agile, to allow for flexibility and constant evaluation. • Balancing Act: 1. Implement risk-mitigation methods like as diversification and contingency preparation. 2. Continuously monitor and reassess risks to adapt to changing circumstances and strike a balance between innovation and risk management.

Balancing innovation with risk management starts with a strong grasp of risk fundamentals. Identify and prioritize risks by analyzing their impact and likelihood, creating a clear framework. From there, foster an environment where innovative ideas are evaluated through this risk lens. Implementing controlled pilot programs allows experimentation with minimized exposure. Encourage cross-functional collaboration to leverage diverse perspectives, ensuring that innovation aligns with strategic objectives. This structured yet flexible approach not only keeps risks in check but also promotes a culture where creativity thrives within safe boundaries, driving sustainable growth and resilience.

Invest early in an environment that allows you to A/B test strategy, product, vendors, etc..... continuously. Every year, there is new tech hitting the market that is better than prior years, or utilizing data that was previously overlooked. Also, as a leader, promote a culture where innovation is encouraged, but within the bounds of risk management. Encourage your team to think creatively and come up with new ideas, but also to consider potential risks and develop mitigation plans.

It does not take a rocket scientist to postulate that lack of innovation would lead to stagnation, decelerate growth and ultimately lead to extinction. Yet, most people resist change to begin with. The average lifespan of a company in the Standard & Poor's (S&P) 500 index has been declining over time. From a span of over 60 years, it is down to under 20 years now as per reputed consulting firms. Organisations, entities and individuals that: a. don't lose sight of their long term viability b. balance risk based decisions while continuously innovating, and c. are more resilient are the ones that outlive competitors.

Risk management main priority: anticipating everything that could go wrong, even the improbable. Imagine you’re steering a ship through stormy seas. You prioritize risks like navigating obstacles. Use your analytical skills to forecast potential dangers. Encourage your team to think critically and foresee the unlikely. Address conflicting priorities by mapping out risks, assigning them impact and likelihood scores, and then focusing on those with the highest potential disruption. Your immediate steps: conduct a risk assessment workshop, categorize risks by severity, and develop a mitigation plan. Always communicate clearly, empowering your team to navigate the storm with you.

Risks change continuously so it's important to be aware of any new ones. The risk committee should discuss impact on the business and assess the effectiveness of current controls. Likely scenario is that new and innovative controls need to be designed. Ensure risk, compliance and fraud personnel are in the same room when these critical decisions are being made.

Have a risk register prepared at all times: After each innovation cycle, conduct thorough reviews to capture valuable insights. This could involve interviews, surveys, or data analysis to understand what went well and what didn't. Analyze the collected data to identify recurring themes or patterns in encountered risks and their mitigation strategies and integrate these learnings into future risk assessments.