Using key risk drivers to enhance action plans

There has been talk about key risk indicators, bow-ties, etc. for some time. However, one extra reason to at least set up these risk driver scenarios is that it can help:

  • identify new risks, and

  • help get better metrics.

When forced to not just identify metrics but to first think through the drivers and consequences of the risks, executives begin to see new risks as their minds work through what’s causing the risks. Additionally, as they consider the final and most probable drivers, they then, and I would argue only then, can get the best possible metrics to manage the risk.