The Riskability Doctrine
The concept of Risk Management plays a role to identify the elements of risk prevention, and risk mitigation. Risks involve no legal consequences until the actual event occurs and heavy risk should not be allowed to happen without identification. On the other hand you need to take calculated risks.
Under normal circumstances, as the current credit and financial crisis has proved, the normal approach to Risk Management is often recognized, only when it was too late to take any effective action.
The Riskability doctrine is based on recognizing the retroactive identification of risks. When an event involving a certain element of risk does occur, it is then concluded that there had been a risk factor beforehand. Therefore that risk was not predictable and yet that it was measurable. There cannot be some compensation for an event before it occurs. The Riskability Doctrine is based on liability solely related to risks. If the enterprise had eliminated all liability based on harm or damage, and had founded liability solely based on risk, the CEO/CFO would probably have come up with very similar provisions.
The concept of risk has the advantage of being applicable to both continuing events and to single events. If the risk was not predictable, how can it be possible to determine how to prevent it?
Like the dish of Bacon and Eggs, there are operational and strategic risks involved to the essentials involved in the creation of this delicious breakfast plate. To create the dish you have to combine the retroactive appreciation of the risk of death— with the operational process of delivering eggs. The Riskability approach is viewed as progressive development that combines these processes.
Attend the comprehensive webinar series to understand the EGRCM methodology and solutions to achieve significant and material answers on areas such as competition and strategic advantages, operational & financial risk management, automation through information/IT controls, regulatory compliance creates stakeholder value.
Discharging Riskability at a Enterprise level. –A complete walkthrough of Risk management and implementation challenges will be provided in 6 webinars/workshops.
The goal of RISKABILITY is to implement a structured and systematical approach to manage risks within the organization and to achieve the strategy and objectives of the organization more effectively and efficiently.
The Riskability approach creates value because EGRCM is at the core;
- It is an essential part of organizational processes
- It is part of the management assessment process
- It is dynamic, iterative and responds to change
- It focuses clearly on uncertainty
- It is systematic, structured and timely
- It is based on the best available data and information
- It is simple but documented to be measured and managed.
- It takes account of human and cultural factors
- It is transparent and universal
- It facilitates continuous improvement and strengthening of the organization
Taste for Riskability.
Appropriate Risk Management does not guarantee profits, but inappropriate Risk Management most certainly guarantees eventual losses.
Kersi F. Porbunderwalla
Inspired by Warren E. Buffett
Chairman Berkshire Hathaway