by Rick Nason, PhD, CFA
Partner, RSD Solutions Inc
“The Big Can, the Small Do” is the title of an Economist blog found at http://tinyurl.com/3ltrw68. While the article itself is very interesting (it is about how smaller companies are more nimble and bureaucracy free and thus more able to innovate despite their lack of resources), it was the title itself that caught my eye as a risk manager.
Too often risk departments (particularly those that start down the Enterprise Risk Management path) become bloated bureaucracies that are doomed to inefficiency. Then a big consulting firm is engaged and they in turn engage their own army of consultants that becomes a parallel bureaucracy that simply doubles the inefficiency (tripling the cost) while producing even less effectiveness.
Sometimes small and innovative truly is the beautiful way to go. A small innovative approach to risk management can not only be very innovative, it can also be very efficient and effective. If your risk management process starts with an organization chart, followed then by a flow chart, then innovation and efficiency and effectiveness are likely to be a long, long way off.
No comments:
Post a Comment