Innovation in Risk-Taking

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

A webinar looking at why the governance of risk-taking is the primary difference between company success and company stagnancy, part of the Shaparency series.

The surprising and complex intersection of risk, risk perceptions, and an organization’s ability to create value (let alone survive).
 

Keynote address to the Risk Beyond 2022 Conference on how to look past the fog of today and reshape the future.
 

A demonstration of Portfolio Shaping -  going well beyond typical ESG analysis whereby your equity portfolio performance is enhanced through better risk-taking.

Learn how to make ESG Investing more successful by simultaneously addressing the requirements of investors, the fiduciary obligations of investment managers and boards, along with the needs of those in your business social network. 

A discussion of the history of "chief risks" going back about 50 years, as well as our  progression to the state of risk management and risk governance today.  Q&A with Todd Davies and me is also available at 1:21:20. 

 Risk-taking is an essential part of engaging in business. I join Alexander Lowry to dive into the key discussions to be had in the effective taking of risk in pursuit of our corporate goals and purpose.

Joseph Ayoub and Raza Shaikh, hosts of the On Boards podcast, interview David R. Koenig and note, "If you listen to this episode, you will understand that managing risk, in a comprehensive, forward-looking manner is an essential best practice in running any business."

I was pleased to be the second guest invited to the ACCA's Rethinking Risk podcast where Rachael Johnson, Head of Risk Management and Corporate Governance for the ACCA and I discussed boards and risk.

Joshua Friedeman, host of Life as Leadership, and I talk about risk, governance, the inter-dependencies of systems in our lives, governance of your personal capital, hierarchical vs. distributive governance, and more...all in about 30 minutes.

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

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. 

This paper is about helping boards of directors and senior executives make better decisions in highly turbulent times when multiple critical, formerly trustworthy elements in our world are all in motion.

This article appeared in Strategic Finance. Defining and achieving corporate purpose is a major challenge for today’s executive teams and their boards. Can companies create long-term sustainable value by managing risk and thereby realizing competitive  advantage? How can companies best overcome the obstacles? 

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

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. 

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

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

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

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.

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?  

The digital era has ushered in a new set of risks and opportunities that require an innovative response. To navigate these challenges successfully, organizations must adopt a forward-looking manner in their governance practices, anticipating risks and preparing for them before they materialize.

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.

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

Are there critical risks that our brains are unable to see? Is there a solution?

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.  

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. 

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

Skepticism over centralized authority, especially following the near-collapse of  the global financial system in 2008 led to the development of  “trustless” networks. One example is the blockchain behind Bitcoin.

With David X Martin, we discuss how boards and organizations can foster a positive embrace of risk-taking through integrating risk like other costs, resiliency planning, forward-facing techniques, and better board engagement.

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

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.

Cyber Risk Governance Principles for Boards of Directors - Guidance 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. 

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. 

An article in Bloomberg Law about the chief risk officer is likely becoming a hot commodity in the wake of the Coronavirus pandemic. (Quoted)

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

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. 

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

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 

A summary of a panel discussion featuring David R. Koenig, Jean Hinrichs, Charles Goldenberg, and Bob Mark. The panel was moderated by Gaurav Kapoor of Metric Stream.

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

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

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

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

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

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

An article discussing the boundaries of our personal freedom as determined by our complex social interactions and the necessity of re-thinking the meaning of liberty to ensure our ability to be free. (Listen to the Audio Article)