Strategies for Advancing a Risk Management Program

RISK MANAGEMENT SHOULD… 1. Create value or get out of the way. If your risk report doesn’t help us win, save, or grow, it’s just noise. Risk must unlock opportunity, not just list threats. 2. Be embedded, not bolted on. Risk management isn’t a department. It’s a mindset. It should be in the room before the decision is made, not after things go wrong. 3. Be the co-pilot of strategy, not the rearview mirror. Don’t tell me what happened. Tell me where we’re headed—and what could take us off course. 4. Shine a spotlight on uncertainty. Sugarcoated risk is still poison. Leaders need brutal clarity, not polite ambiguity. Say it straight: “This could kill us.” 5. Be boringly consistent, not sexy and vague. Structure beats slogans. Templates beat memory. Systems save companies. Gut feeling doesn’t scale. 6. Run on truth, not guesswork. If your risk plan is built on outdated data, it’s a fantasy. Real-time insights, or nothing. 7. Fit your context, not copy-paste from ISO 31000. Your risk plan should fit your size, industry, and ambitions, not what a consultant used for a telecom company in Singapore. 8. Understand that people are the biggest risk. Human error, ego, fatigue, fraud—this is where the real threats hide. If your risk system ignores psychology, it's blind. 9. Be open and ruthless. Silence is the enemy. Risk thrives in closed rooms. Bring it out. Discuss it. Document it. Debate it. Kill it. 10. Adapt faster than the threats evolve. AI, climate change, cyberattacks, and misinformation. If your risk response isn’t evolving weekly, you’re already obsolete. 11. Never settle. If your risk register is static, your business is stale. Every month, ask: “What did we miss?” Then fix it. What else have I missed?

Risk is everywhere in construction. Margins are thin. Delays are costly. One unforeseen issue can wipe out months of work and escalate costs. But there’s a way to take control and stay ahead. Integrating risk management systems and processes into every project is crucial to building confidence and security, which sets the best apart from the rest. Here’s how top contractors use NCD's risk management processes to boost efficiency and protect profits—at every stage of a project: 1. Pre-Bid and Award: Spot Trouble Before It Starts ↳ Review every contract term. Hunt for hidden risks in scope, payment, and liability. ↳ Build a risk register before you bid. List every possible threat—legal, financial, supply chain, weather, labor. ↳ Use standardized checklists and templates. These catch what the eye misses. 2. Preconstruction Planning: Build a Safety Net ↳ Map out the project’s risk landscape. Who owns each risk? What’s the backup plan? ↳ Set up clear communication channels. Ensure that everyone understands the risks and their respective roles. ↳ Develop contingency plans for significant threats, including delays, cost spikes, and material shortages. 3. Construction Execution: Track and Tackle Risks in Real Time ↳ Monitor progress with risk audit frameworks. Check for early warning signs. ↳ Update the risk register as new issues pop up. Stay flexible. ↳ Use delay analysis tools to spot schedule threats before they snowball. 4. Schedule and Cost Management: Keep Surprises Off the Books ↳ Track costs and timelines against your risk register. Flag overruns early. ↳ Utilize standardized delay methodologies to expedite dispute resolution. ↳ Document everything. Good records mean faster claims resolution and fewer losses. 5. Closeout and Claims: Finish Strong ↳ Review all risks at project close. Make sure nothing lingers. ↳ Use your documentation to resolve claims quickly and fairly. ↳ Feed lessons learned back into your risk framework for the next project. The real power comes from making risk management a continuous commitment—not a one-time event. Standardized tools and templates make it easy to identify, track, and resolve problems before they escalate. Contractors who master this approach don’t just survive—they thrive. They protect their margins, deliver on time, and build a reputation for reliability. In today’s construction world, that’s the only way to win.

In today’s fast-evolving banking environment, CROs face the dual challenge of navigating an increasingly complex risk landscape while meeting the expectations of boards, business leaders, and regulators. The 𝟮𝟬𝟮𝟰 𝗘𝗬/𝗜𝗜𝗙 𝗴𝗹𝗼𝗯𝗮𝗹 𝗯𝗮𝗻𝗸 𝗿𝗶𝘀𝗸 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘀𝘂𝗿𝘃𝗲𝘆 highlights how banking CROs are rising to this challenge by embedding agility into their strategies. From leveraging cutting-edge technologies to expanding scenario planning and enhancing talent acquisition, CROs are taking decisive actions to ensure their institutions can swiftly adapt to emerging threats and market shifts. Here are five key strategies outlined in the latest report that CROs are using to drive agility and resilience in the banking sector: 🔍𝗘𝘅𝗽𝗮𝗻𝗱𝗶𝗻𝗴 𝘀𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴: CROs are increasingly using scenario analysis to assess risks like geopolitical instability, financial volatility, and climate change. Notably, 58% of CROs say scenario analysis and stress testing are key for managing climate-change risks. 🤖 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝗔𝗜 𝗳𝗼𝗿 𝗿𝗶𝘀𝗸 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: AI is becoming essential for more efficient risk management. 59% of CROs are using AI to address operational fraud, 44% for compliance risks, and 40% for credit risk management. Interestingly, banks in Latin America are prioritizing AI for automating operational tasks (59%) more than their peers globally (41%). 💰 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝗶𝗻𝗴 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗿𝗶𝘀𝗸 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: With shifting risk priorities, CROs are enhancing financial risk measures while addressing the increasing significance of non-financial risks. Despite geopolitical and climate risks taking center stage, 62% of CROs are reducing risk appetite and curtailing lending to high-risk industries. 👥𝗔𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝗻𝗴 𝗻𝗲𝘄 𝘁𝗮𝗹𝗲𝗻𝘁: As risk management becomes more technology-driven, human talent remains critical. 63% of CROs are prioritizing digital acumen, with 54% seeking talent that can adapt to an ever-changing risk environment. A blend of technology and skilled professionals is crucial for managing today’s complex risks. ⚙️ 𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗶𝗻𝗴 𝘁𝗵𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗺𝗼𝗱𝗲𝗹: To meet increasing demand, 64% of CROs plan to add more risk management resources in the frontline over the next three years. The future also points toward greater reliance on outsourcing and right-shoring in the coming years. These strategies underscore the need for CROs to adopt a forward-looking, agile approach in risk management. By integrating these CROs can position their organizations to swiftly adapt to the challenges ahead. Nigel Moden, Karl Meekings, Saket Chitlangia, Sachin Sharma, Dhruv Ahuja, Maureen L. Do Rego, Smita P., Ankit Srivastava #RiskManagement #AI #Leadership #Banking #DigitalTransformation

Too often, risk management operates in a parallel universe - technically sound, well-documented, but disconnected from the organisation’s actual goals, which results in risk processes that slow things down rather than enabling smarter, faster decisions. A risk framework should be a strategic asset. It should help leaders weigh trade-offs, allocate resources, and pursue growth with confidence, but that only happens when risk appetite, controls, and reporting are aligned with what the business is actually trying to achieve. This alignment doesn’t happen by accident, it requires deliberate effort. Risk teams need to understand the business model, the strategic priorities, and the pressures leaders are facing, and then they need to translate those into risk terms - what’s acceptable, what’s not, and where the real exposure lies. When risk and strategy are aligned, the conversation shifts. Risk management stops being a blocker and starts becoming a partner. It’s no longer about saying “no”, it’s about helping the business say “yes” to the right opportunities, with eyes wide open. #RiskManagement #StrategicAlignment #BusinessStrategy #RiskAppetite #Leadership #OperationalRisk

💡 Have you mapped out the full lifecycle of your ThirdParty Risk Management (TPRM) program? Many organizations focus heavily on due diligence or contracting, but true resilience only comes when you think about the entire journey, from identifying a vendor to securely offboarding them. Here’s a practical breakdown of the 8 stages of TPRM lifecycle management: 1️⃣ Planning & Strategy Every strong TPRM program starts with clarity: - Define risk appetite, thresholds, and escalation paths. - Assign ownership and governance. - Build policies aligned with regulatory guidance (OCC 2013-29, DORA, PRA, etc.). 👉 Without this foundation, everything else is reactive. 2️⃣ Third-Party Identification & Categorization Not all vendors carry the same level of risk. Start by mapping and classifying: - Criticality (impact on operations & customers). - Risk tiering (high/medium/low). - Service type (IT, cloud, operations, finance). This step ensures your resources are focused where the greatest risks live. 3️⃣ Due Diligence & Risk Assessment Think beyond the check-box. Assess vendors on: - Cybersecurity maturity - Financial stability - Regulatory compliance - Operational resilience - ESG and ethical sourcing Frameworks like SIG, NIST, ISO 27001 can help bring consistency. 4️⃣ Contracting & Onboarding Contracts are risk management tools, not just legal documents. Key inclusions: - Data protection clauses - Audit rights - SLAs & performance measures - Exit & transition clauses Successful onboarding = clear expectations from day one. 5️⃣ Ongoing Monitoring & Performance Management Risk doesn’t end at onboarding. Continuous oversight includes: - SLA and performance reviews - Cyber posture monitoring - News & regulatory watch - Periodic reassessments (frequency based on risk tier) High-risk vendors may need real-time monitoring, not just annual reviews. 6️⃣ Issue Management & Remediation When issues arise: - Escalate based on severity - Document everything - Track remediation timelines - Communicate with stakeholders/regulators where necessary The ability to respond fast is as important as identifying the risk. 7️⃣ Termination & Offboarding Vendors eventually leave. Make sure offboarding is structured: - Revoke access - Ensure data return or destruction - Execute transition plans for critical services - Update inventories & registers This is often overlooked, but critical for security & compliance. 8️⃣ Continuous Improvement No program is ever “done.” Measure effectiveness using: - KPIs/KRIs & dashboards - Independent audits & reviews - Program maturity assessments - New tech & automation (AI, monitoring tools, workflow platforms) Adapt your lifecycle to match evolving regulations & business needs. TPRM lifecycle management is not a one-time project, it’s a continuous loop of planning, execution, oversight, and learning. #ThirdPartyRisk #VendorRisk #OperationalResilience #Compliance #3prm #RiskManagement #TPRM #Governance #Procurement #SupplyChainRisk

I’ve built cybersecurity programs for 20 years and I always start here. With a process rooted in the business first. 🧙🏼♂️ If you haven't worked though a process to build your cyber risk program, you're hoping, not knowing if you're protected. I use this to advise cyber leaders  I use this to build programs as a CISO I use this in my speaking sessions on cyber programs 🧠 Here's the 9 steps to comprehensive cyber risk management 1️⃣ Business Mission → Know what your company is trying to accomplish → Understand how security enables their success → This is your foundation, skip this & everything crumbles 2️⃣ Culture & Risk Appetite → Learn how decisions are made → Understand appetite for risk & change → This tells you how to position things internally 3️⃣ Industry Compliance → Identify what regulations you must meet → These drive your baseline requirements → Risk appetite may show up here also 4️⃣ Security Strategy   → Combine steps 1-3 into your strategy → Define how & who for decision making → Keep it simple = strategy not process or policy 5️⃣ Business Impact Analysis & Asset Management → Catalog all assets: systems, data, apps, processes → Assign business owners (not IT or Cyber) → Identify critical systems, these get priority 6️⃣ Risk Assessment → Map threats against your assets & BIA   → Quantify impact in dollars, not technical terms → Define mitigation costs, test where needed 7️⃣ Current State, Desired State → Compliance + Framework (ex: NIST CSF) = guide → Assess where you are vs where you want to be → Document gaps = projects, programs, tasks 8️⃣ Budget & Buy In → Present gaps as business risks, not tech problems → Get budget approved before building timelines → Make executives look smart for funding you 9️⃣ Road Map → Sequence projects based on risk & budget → Plan out short & long term (6, 12/18 months) → Revisit the entire roadmap annually The biggest mistake I see? Jumping straight to tech without understanding the business. Then they wonder why leadership questions every purchase. You can't secure what you don't understand. You can't prioritize without knowing impact.   You can't get budget without proving value. Foundation first. Business value always. 💬 What step do you struggle with?⤵️ 🔄 Repost to help others protect their business 📲 Follow Wil Klusovsky for wisdom on cyber & tech business

🎯 Auditing the Risk Management Process: From Compliance Check to Strategic Resilience In today’s volatile business environment, effective Enterprise Risk Management (ERM) is no longer a compliance burden—it's a strategic competitive advantage. A deep dive into the principles of auditing the Risk Management Process highlights a fundamental shift in the role of Internal Audit. We must move beyond traditional control reviews to assess how effectively the organisation identifies, manages, and mitigates risk. Six Strategic Shifts for Internal Audit Leaders: 🔗 Integration over Isolation: Risk management must be embedded into strategy, budgeting, and daily decision-making—not treated as a standalone checklist or annual exercise. ⚖️ The Three Lines in Action: Internal Audit (the Third Line) must independently evaluate the design and effectiveness of the First (Management) and Second (Risk/Compliance) lines, ensuring accountability and balance across the entire system. 🧠 Risk Appetite & Culture: Auditing the risk culture—how employees perceive and act toward risk—is as critical as testing policies. Ensure the 'tone at the top' aligns with behaviour at all levels. ⚡ Dynamic Risk Assessment: Move beyond static reviews. Utilise continuous, data-driven assessments, predictive analytics, dashboards, and scenario planning to enhance responsiveness and foresight. 📈 Assurance on ERM Value: Evaluate whether the risk framework (governance, ownership, and escalation) actually enables timely decision-making and adds value, rather than just documenting potential issues. 🛡️ From Detection to Prevention: The auditor's role is evolving: from detecting control failures to helping the organisation anticipate and prevent risk exposure through strong monitoring and risk intelligence systems. ✅ In summary: A mature internal audit function today must audit not only "what went wrong," but also "how we prepare for what could go wrong." Auditing the risk management process is about ensuring resilience, agility, and strategic foresight. 💡 Question for the Community: What is the single biggest hurdle your organisation faces in truly integrating risk management into strategic decision-making? #RiskManagement #InternalAudit #Governance #ERM #BusinessResilience #AuditLeadership #ContinuousImprovement

🚢 From the Bridge to the Boardroom: Leading a World-Class Third-Party Risk Management Program In the US Navy, we have a saying: “Trust, but verify.” Whether you’re standing watch in the Combat Information Center or negotiating with a new tech vendor, the principle is the same — your mission’s success depends on the reliability of your partners. In my leadership journey — from commanding cyber defense units to serving as CISO — I’ve seen how Third-Party Risk Management (TPRM) can either safeguard your mission or sink it. The recent ProcessUnity Third-Party Risk Management Best Practices guide reminded me that great TPRM leadership isn’t just about ticking compliance boxes — it’s about building a living system that: 1️⃣ Keeps Risk Out from the Start Conduct inherent risk assessments before you sign the contract. Tier vendors (Low, Medium, High, Critical) based on operational, security, compliance, and financial factors. 2️⃣ Monitors Continuously, Not Just Annually Use residual risk scores to set review cadences. High-risk vendors? Review at least annually. Lower-risk vendors? Adjust frequency to conserve resources without sacrificing vigilance. 3️⃣ Documents & Automates for Consistency Mature programs replace spreadsheets with automation to track onboarding, due diligence, and SLA performance. Smart, self-scoring questionnaires help you focus on the issues that matter most. 4️⃣ Integrates External Intelligence Cybersecurity ratings, financial health scores, AML checks, ESG ratings — these serve as your “virtual watchstanders” between formal reviews. 5️⃣ Drives ROI, Not Just Risk Reduction Weed out underperformers, negotiate better terms, and transform your TPRM program from a cost center to a strategic advantage. 💡 Leadership takeaway: Whether you’re leading a warfighting command or a security engineering team, the fundamentals are the same: define the process, enforce accountability, and build trust through verification. 📣 Over to you: If you had to improve ONE aspect of your vendor risk management today, what would it be? How do you balance speed-to-contract with thorough due diligence in your role? Let’s learn from each other. The threats are evolving — our leadership in risk management must evolve faster. #Leadership #Cybersecurity #RiskManagement #NavyToSiliconValley #ThirdPartyRisk #TPRM #VendorManagement #ServantLeadership

The 5 Steps to a Risk-Based Third-Party Risk Management (TPRM) Program: Risk-based TPRM programs can feel overwhelming to implement. Teams that rely on check-the-box processes often don’t know where to begin. Shifting to a risk-based approach requires a structured transformation. It means moving from a compliance mindset to a truly risk-centric one. Here are five practical steps to guide that transition. Step 1: Start with Your Risk Register Begin by identifying all potential business risks from third-party activities. This includes risks like data exfiltration, DDoS attacks, service failure, and privacy violations. Next, determine the business impact associated with each risk. Assign priorities based on severity of the impact and likelihood. You can use quantitative models like FAIR or simple Low-Medium-High-Critical (L-M-H-C) scoring. Choose the method that aligns best with your organization’s maturity. Step 2: Understand Your Third-Party Landscape Identify the categories of vendors your company relies on. Use practical groupings such as Cloud, Payment Providers, or Raw Materials Suppliers. These categories become the baseline for mapping risks. They help you understand impact, dependencies, and assessment scope. Step 3: Prioritize Your Third Parties Map your vendor categories to your risk register using a matrix. This adds complexity upfront but pays off during control mapping. This process reveals your Critical Vendors. These are the third parties with the greatest potential impact on your organization. Your prioritized risk register automatically drives vendor prioritization. High-impact risks translate directly into high-priority third parties. Step 4: Control-Based Risk Assessment Identify the controls needed to address each risk for each vendor category. Frameworks like NIST or ISO can guide you in mapping controls to risks. Start with Internal Controls you own and can enforce. Examples include SSO, data handling policies, and access restrictions. Adopt Zero-Trust principles wherever possible. This reduces reliance on external partner controls. Then define External Controls you require from vendors. Identify control gaps, required documents, and certifications for assurance. Step 5: Risk Remediation Once you understand your inherent/current/residual risks, apply the four treatment strategies. Each leads to a clear business decision. Accept: Risk is low and tolerable for the business. No further action is required. Avoid: Risk is too high to proceed. The organization chooses not to engage with the vendor. Mitigate: Controls are added to reduce risk to an acceptable level. This often involves remediation requirements for the vendor. Transfer: Liability is shifted through contracts or insurance. Used when risk cannot be fully mitigated internally. #tprm #riskmanagement #automation

The risk management profession stands at a crossroads. The approaches that dominated the last two decades are failing. Organizations spend millions on risk registers, heat maps, and compliance frameworks, yet still make catastrophic decisions. The future belongs to risk managers who understand these ten fundamental principles. Principle One: Risk Analysis Happens Before Decisions, Not After The most critical shift you need to make is understanding when risk work actually matters. Risk management isn't about documenting what could go wrong after decisions are made. It's about analyzing uncertainty before you choose. Every major decision your organization faces, whether it's a capital allocation, a strategic investment, or a vendor selection, should include uncertainty analysis as part of the decision process itself. If your risk assessment happens after the choice is made, you're creating documentation, not value. The question isn't "what are our risks?" The question is "given these uncertainties, what should we choose?" Principle Two: Stop Managing Lists, Start Improving Choices Risk registers are seductive because they feel productive. You're identifying risks, assigning owners, tracking mitigations. But here's the uncomfortable truth: maintaining a list of things that could go wrong rarely improves any specific decision. The future of risk management is decision-centric. Instead of asking "what are all our risks," ask "what decision are we making, and what uncertainties matter for that choice?" This shift transforms your role from a compliance function into a strategic partner. You're no longer the person who maintains the risk register. You're the person who helps the business make better choices under uncertainty. Principle Three: Distributions Beat Point Estimates Every Time When someone asks you "what's the expected cost of this project," your instinct might be to give them a number. Resist that instinct. Single-point estimates are lies dressed up as forecasts. The future is a range of possibilities, not a single outcome. Learn to think and communicate in distributions. The project doesn't cost five million dollars. It has a fifty percent chance of costing between four point two and six point eight million, with a ten percent chance of exceeding nine million. This isn't being pedantic. This is being honest about uncertainty. And it fundamentally changes how decisions get made. CONTINUE....