Adaptable Mindsets are a Must

When it comes to risk, what’s the biggest destroyer of value for a business today?

Right now, I think the answer is - failure to adopt an adaptable mindset.

In an era of exponential changes, such as climate shifts and GenAI, sticking to tried-and-true practices without questioning their current relevance might seem easier, but it’s not necessarily the right approach.

Take risk management, for example.

Many risk frameworks drive a “BAU” style of risk processes: risk assessments reviewed at set frequencies. If these assessments aren’t done on time, the process is labelled “bad,” but timely reviews don’t automatically equal “good.” It’s more complex than that.

Consider this: if change is the new normal, shouldn’t our risk approach be more focussed on managing risks in, through, and from change? We can do this by helping our risk, strategy development, and project processes become well-oiled and integrated machines.

APRA, through CPS230, highlights two critical focuses:
🥇 How well will you respond when processes impacting your customers go awry?
🥈 Are you considering risk and resilience in your investment decisions now and for the future?

Risk processes aren’t there to slow your business down—they’re there to make it stronger. If your risk processes haven’t adapted to change being the new normal, maybe it’s time to embrace an adaptable mindset. As a risk professional lead by example, for example, by fostering a culture of adaptability within your organisation by shifting your RMF focus to change and scenario planning.

Where else could you challenge existing risk practices to be more adaptable?

hashtag#RiskManagement hashtag#BusinessResilience hashtag#Change