Risk intelligence
Risk Intelligence is a buzzword that generally means beyond Risk management, though it has been used different ways by different writers. The term is being used more frequently by business strategists when discussing integrative business processes related to governance, risk, and compliance.
Definitions
The US business writer David Apgar defines it as the capacity to learn about risk from experience.[1]
Management consultant and risk advisor Rick Funston defines risk intelligence as a dynamic approach to protect and create value amid uncertainty. It is an enterprise wide process integrating people, processes (systems), and tools to increase information available to decision makers for improved decision making.[2]
The UK philosopher and psychologist Dylan Evans defines it as "a special kind of intelligence for thinking about risk and uncertainty", at the core of which is the ability to estimate probabilities accurately.[3] Evans includes a risk intelligence test (RQ) in his book and on his website (below) analogous to IQ or EQ.
American financial executive, author, and Columbia University professor Leo Tilman defined risk intelligence as “The organizational ability to think holistically about risk and uncertainty, speak a common risk language, and effectively use forward-looking risk concepts and tools in making better decisions, alleviating threats, capitalizing on opportunities, and creating lasting value.” [4] He has argued that risk intelligence is essential to survival, success, and relevance of companies and investors in the post-crisis world.
Comparison with Business Intelligence
As an emerging concept, Risk Intelligence shares characteristics with other topics such as Business intelligence and Competitive intelligence. As such, there are some in those camps that believe risk intelligence is the set of processes for the transformation of risk data into meaningful and useful information for risk analysis, treatment and planning purposes.
See also
References
- ^ Apgar, David (2006). Risk Intelligence: Learning to Manage What We Don't Know. Boston: Harvard Business School Publishing. p. 210. ISBN 1-59139-954-8.
- ^ Apgar, David (2006). Risk Intelligence: Learning to Manage What We Don't Know. Boston: Harvard Business School Publishing. p. 210. ISBN 1-59139-954-8.
- ^ Funston, Frederick (2010). Surviving and thriving in uncertainty: creating the risk intelligent enterprise. Hoboken, New Jersey: John Wiley & Sons, Inc. p. 338. ISBN 978-0-470-24788-4.
- ^ Tilman, L.. Risk Intelligence: A Bedrock of Dynamism and Lasting Value Creation Retrieved 2015-04-01
External links
- Projection Point - Online risk intelligence test