by Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Ronald Regan is reputed to have said that “All great change begins at the dinner table”. I am not sure if this is 100% true as I am believe that in certain situations that leaders need to lead and we need to loosen our infatuation with management by consensus.
However in risk management there is often a general lack of understanding of why certain risk management policies are in place. Too often edicts concerning risk management policies come “down from on high” without any rationale except that it is “good risk management”.
If risk management spent more time at the kitchen table – that is explaining to the rank and file and middle managers – the purpose and rationale behind the policies, then I am confident that better risk communication would result, and with it a better set of risk policies and a better implementation of risk policy.
The one catch with this is that risk managers would have to make their policies understandable, and the rationale for their policies understandable. This by itself would be a beneficial side effect of discussing issues at “the dinner table”.
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