Welcome! This site is your entry point to learn more about the practical insight in The Operational Risk Handbook from Brian Barnier and his contribution to Managing Risk and Performance: A Guide for Government Decision Makers
Failing to learn from the past is foolish, failing to prepare for the future is arrogant.
Risk management is not a paperwork exercise for compliance. Compliance will always leave gaps and exposures to real business risk that can harm customers, partners and shareholders. Look at the litter of companies over the years who have been compliant and still suffered loss.
-- Brian Barnier
Risk to Return -- Why didn't we know?
Business and markets continue to react to nasty surprises. Supply chain disruptions, “unusual” trading events, natural disasters, civil unrest, trading system outages, communications network failures, frauds and more. After hundreds of years of risk management history, why are we so surprised when a bad thing occurs? What root cause or early warning was missed? Who knew before we knew and why?
What wasteful activities distract risk managers and business leaders to managing real risk to return in the real work?
Most importantly, why do enterprises sadly miss the opportunity to earn more risk-adjusted return?
These weaknesses in risk management apply whether evaluating the purchase of a share of stock in an individual company, the market for those shares or a broader view of the economy.
Failure to Act
People, good people, fail to act when they don't feel the full pain of the sickness, or feel the cure is worse or too costly. In risk management, this means not fully understanding risk faced or the response. This is a tragedy in itself and opens the door to disaster.
Learning from across time, industries and professions
Yes, we have decades and centuries of experience in risk management – across professional disciplines and industries. Yet, individual human beings are often too focused in their silos to draw on the wide range of proven tools and methods. Further, the varying terminology and methods of different disciplines often muddy the waters. This deprives them of the opportunity to better understand risk in their piece of the system and to understand how the risks in the rest of the system might affect their piece.
Shifting toward performance-oriented risk management
Brian Barnier steps back to appreciate this diversity and attempts to harmonize. He seeks to help people become aware of the rich history of risk management disciplines -- Alexander the Great, the father of managing risk to operations -- and apply that library to their individual situations to improve performance.
Performance is measured in profitable revenue in an individual enterprise or in sustaining broader economic growth. His objective is not only to help leaders improve, but also to guide them to improve more efficiently -- to do “six months of work in six weeks.”
As a speaker, he is appreciated for his clarity, focus and enthusiasm, motivating people to actions that produce results.