Objective Centric Risk Management is recommended by both ISO 31000:2018 - Risk Management and COSO 2017 ERM Framework​.

However most documented risk management approaches do not focus on an organisations objectives, they focus on what we fear . How many risk workshops have you been to where the questions started with "what do you loose sleep over?" or "what could go wrong?"

As Directors and Executives we are focused on creating a better risk culture because we know a great culture is a strong predictor of our risk outcomes.  But then we start every risk discussion in a negative state of mind!

No more.  There is a better way.

Instead of starting our risk discussions on the "uncertainty" to get a list of what could go wrong, and hopefully a sprinkling of opportunities, we start with the organisations key "objectives"  and focus on  what must we get right to achieve our objectives.

Paul Slovic has highlighted "the psychometric paradigm" of risk since the late 1970's and most researchers agree, humans are not naturally good at assessing uncertainty, our biases and human nature skew our results.  But we are much better at defining what we want to achieve.

This re-framing of risk management is driving the shift in risk culture  we want and it plays to our natural strengths.

"the effect of uncertainty on objectives."   
ISO 31000:2019 - Risk Management

"  Risk perception is the subjective judgement that people make about the characteristics and severity of a risk."  
  
Paul Slovic, Understanding Perceived Risk: 1978-2015

Want to see how? Reach out for an obligation free discussion.