Red's NOT dead: Risk Management and e-Harmony

1. Red’s NOT dead… You had me at Risk.. Robbie Sinclair Manager Risk and Business Continuity Griffith University July 2015

2. Red’s NOT dead • Risk Management and e-Harmony • Risk appetite and tolerance – lets not get them confused! • Lies, damn lies and Risk Registers • Managing myths and magic • Takeaways #2

4. Appetite and Tolerance – what's the difference? Pick one card from a new complete pack of cards, with the following consequences. • Which option is the most risky for you? • If you pick • 1. a spade you pay me $500, otherwise I give you $300 • 2. a heart I give you $700, otherwise you pay me $1000 • 3. a red card I give you $500, black card and you pay me $300 • 4. any card and I give you $100 Pick a card….. Risk appetite is degree of risk someone is willing to accept pursuing goals. Risk tolerance is degree of risk someone can absorb to purse a goal. #4

5. Lies, Damn Lies and Risk Registers • What is a Risk Register? • What does it look like? • What does it tell you? • Can a risk register lie? • Is there a benefit? #5

6. Strategic Risk at Griffith University Risk register is not a risk treatment – it’s a signpost on the journey to risk management. Robust discussion and decision making is risk management – not a risk register. Risks are dynamic – risk registers need constant review to reflect context. #7

7. Red’s not dead – its all in the context It’s ok to have “red” risks. It’s a sign to do something about this risk. It’s important to have clear guidelines to assist us understand what these metrics mean. To change risk rating, think about changing likelihood first, then consequence. But consider both. #6

8. Managing myths and magic • Risks must be minimised? • Build a risk culture across our University? • Our biggest risk is Reputation damage? • Risk management is complex? Risk needs management – not an automatic reduction action. It’s ok to take risks – just understand our appetite, tolerance and options first! Reputation is how others think about us – management is about how we do what we do Risk management is something we all do every day. #9

9. A dozen takeaways • Risk appetite is degree of risk someone is willing to accept pursuing goals. • Risk tolerance is degree of risk someone can absorb to purse a goal. • It’s ok to have “red risks”. It’s a sign to do something about this risk. • It’s important to have clear guidelines to assist us understand what these metrics mean. • To change risk rating, think about likelihood first, then consequence. But consider both • Risk register is not a risk treatment – it’s a signpost on the journey to risk management. • Robust discussion and decision making is risk management – not a risk register. • Risks environments are dynamic – risk registers need constant review to reflect context. • Risk needs management – not an automatic reduction action. • It’s ok to take risks – just understand our appetite, tolerance and options first! • Reputation is how others think about us –management is about how we do what we do • Risk management is something we all do every day. #10

11. Call me… Robbie Sinclair Manager Risk and Business Continuity Nathan Campus Office: 57706 r.sinclair@griffith.edu.au