CRO Spock

by Rick Nason, PhD, CFA

Partner, RSD Solutions Inc.

www.RSDsolutions.com

info@RSDsolutions.com

 

How would a hyper rational Spock do as a risk manager?  “That’s a very human thing to do Captain Kirk.  Most irrational!”  Face it, Spock would bomb as a CRO.  Humans are humans, and Spock was … (actually – I don’t know, most of my Spock knowledge comes from watching Big Bang Theory).  The point is that organizations are made up of humans, and industries are made up of humans, and economies are made up of humans.  Why do we assume everyone is hyper rational like Spock and design regulations and risk management systems as if they are.

Risk Managers Versus Risk Champions

by Rick Nason, PhD, CFA

Partner, RSD Solutions Inc

www.rsdsolutions.com

info@rsdsolutions.com

 

All good books (and even the bad books) on risk management talk about the need for a company to have a risk champion in order to put in place a good ERM system.  The books all talk about what a risk champion does and why they are so important.   A change in tone then takes place and the books talk about implementing risk management.  The tasks change.  The arguments change.  The skills needed change.  Is the risk champion still the risk manager?   Are the skills needed to be a risk champion the skills needed to be a risk manager?  Is your Chief Risk Officer (in title or in deed) a risk manager or a risk champion?  Are they really effective at being both (or neither?)