Innovation in Risk-Taking

The videos and papers below are part of an award-winning collection of work. David R. Koenig was one of the first people to successfully link the governance of risk-taking to better corporate performance. His idea, Risk Capital as Commons, was honored with one of the inaugural M-Prizes for management innovation.  The concepts reviewed below will change the way you think about governance, risk, and how your organization pursues its goals.


Governance and Performance

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An interview with David R. Koenig by the Loyola University Center for Integrated Risk Management and Corporate Governance. 

GOVERNANCE REIMAGINED

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An interview by John Mihaljevic, CEO of MOI Global, about what Governance Reimagined means and the value that comes from the book's approach. It's a 30-minute discussion that was part of their 2019 Meet the Author Summer Forum. 

Risk Capital as a Commons

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A discussion of this award-winning concept and the critically acclaimed book, Governance Reimagined, on the Trust Across America radio show. 

Risk and Governance

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A BrightTalk webinar that examines this critical intersection and how it is often misunderstood.  


Rapidly Evolving Risk Landscape is a Growing Governance Challenge, Say Directors

As political and economic interactions become more complex, and as disruptive technologies and processes make innovation cycles massively shorter, boards of directors are paying more attention to risk. 

The Governance of Risk

An introduction to the special issue of the Journal of Risk Management in Financial Institutions on Risk Governance.

Are Board Risk Committees Becoming a Fiduciary Expectation?

An  article from the Conference Board of Canada's Risk Watch on the increasing expectation from investors that boards establish formal risk committees.

The Relationship Between Boards of Directors and Their Risk Management Organizations

A survey and review of board risk governance practices (2008)

Guiding Principles for Board Risk Committees

Board Risk Committee Best Practices - DCRO Members from 13 countries  collaborated to develop these best practices for board Risk Committees.  

Executives Speak Out on Corporate Governance

An article from Forbes where the author speaks with two highly influential former executives regarding the importance of corporate governance using the framework outlined in the book by David R. Koenig.


Better than ESG

Governance is a measure of trustworthiness and even further, governance is a measure of the respect that companies have for their owners and other providers of critical capital.  I’ve long stated that governance is much broader than the G that populates ESG ratings which have become so popular. In fact, ESG is more accurately described as a subset of what constitutes governance, not vice versa.  What did 2018 reveal about this mindset?  

Using The Value Equation To Exchange Cash Flows And Risk For Better Outcomes

Learn  how to apply the Value Equation in equity valuation, how equity cash  flows are similar to mortage-backed-security cash flows, and how risk  expectations can distort portfolio performance.

Reshaping the Distribution of Outcomes, Not Just Modeling Them

Ultimately, the work of risk managers is about preserving and enhancing the ability for organizations to create value. 


Finding the Commons to Govern

Rather than reviewing reports on successes and failures - what read and react boards do - the next step for a board needs to be identification of the commons among the elements that drive success.  

Moneyball Corporate Governance

An article on the paralells between the well-known Moneyball  story and proper risk governance structures - creating value by  altering the possible outcomes for your organization or investment  portfolio. 

The Governance of Value(s)

An article in the special issue of the Journal of Risk Management  in Financial Institutions on Risk Governance.

The Most Interesting Debate in Corporate Governance is Happening in Real Time

The most interesting debate in corporate governance is not happening in  the boardroom or between activist owners and boards. Rather, it’s  happening all across a field of public (aka “permissionless”)  blockchains.


Divide and Conquer

An article about the conflicts a Chief Risk Officer faces when engaging in both oversight and advocacy.

Cyber Risk Governance a Key Responsibility for Boards of Directors

Amid growing demand for accountability and assurance that data, trade  secrets, and infrastructure are secure from cyber- attacks, boards of  directors often find themselves without clear guidance on their  responsibilities as governors.

Guiding Principles for Cyber Risk Governance

Cyber Risk Governance Principles for Boards of Directors - Gudiance from  an esteemed international committee to provide boards of directors with  direction on governing this existential risk and for external parties  to evaluate boards' practices. 

Qualified Risk Director Guidelines

Identifying Qualified Risk Directors to serve on Boards - Guidance from a  select committee of board directors and chief risk officers on how to  better govern risk through the identification and recruitment of board  members with special risk governance expertise. 


Aligning Compensation Systems with Risk Management Objectives

An exploration of the impact that poorly framed incentive structures can have on the value of organizations. 

Governing the Link Between Pay, Performance, and Risk

As awareness of the link between incentives and employee behavior  becomes more apparent, boards of directors have a responsibility to  ensure that the proper risk-taking culture is being stimulated and not  counteracted by the design of executive and employee incentive  compensation plans that unintentionally encourage negative behaviors. 

The Human Reaction to Risk and Opportunity

An exploration of the impact that human perceptions and reactions to risk have on value.

Guiding Principles for Board Compensation Committees

Compensation Committee Best Practices - Guidance from an international  group of board directors, chief risk officers, and other C-level  executives on how to best govern the link between pay, performance, and  risk via board Compensation (Remuneration) Committees 


Risk Management is Freedom

Many people in risk management are defensive about risk, or they fear it. I seek to give organizations a better understanding of risk so they can handle it confidently and better achieve their goals.

An Introduction to Enterprise Risk Management

An  article on the importance of changing enterprise risk management from a  focus on the downside to inclusion of the pursuit  of gain. 

Business Line Advocacy - The Evolution of Risk Management

An article on the evolution of risk managers towards aiding in the creation of value. 

The Blind Spots of Risk Management

An article in the special issue of the Journal of Risk Management in  Financial Institutions about potential failures in the governance of  risk.

Risk Management as Value Added

An article on the way in which effective risk management can add value to organization.

Accounting for the Cost of Risk Management

An editorial on the potential cost of risk management on innovation.


Congress is Broken – Does the Solution Come from Random Numbers?

An article discussing the power of random numbers in ridding the U.S. election system of gerrymandreing.