Risk management is not just about preventing surprises or bad things from happening. It has a lot to do with innovation. If your risk management department does not provide you with insights to improve your business, it is high time you changed the staff. According to ISO 31000:2018, risk management is the impact of uncertainty on corporate objectives. This means, if you do not have any set objectives, you cannot experience risk. The starting point in the risk management process is to define the organisation objectives: what are your objectives at risk? Let us take a simple example of a…
What is the relationship between risk management and innovation?
How does risk management help with innovation? To understand the relationship, study the pictures below and answer the questions that follow: Picture 1: T Model risks Name the four risks present in the T-model above? What risks do you see? Of course, you may have noted weak frame, the car cannot run fast as it could skid, passengers are not safe due to weather vagaries, and poor navigation, etc. Taken together, those risks make it risky to move in the car. Something must be done. And that is where innovation comes about. Now study the next car: Picture 2: New…
Winning with a digital strategy: welcome to Bank 5.0, part 1
The coronavirus pandemic has created a sense of urgency for the digital bank. In this coronavirus times, banks are now talking about the bank 5.0 to mean a bank of the future that is highly advanced and sophisticated when it comes to anticipating and meeting customer needs. However, to win with the digital agenda, automation must be at the core of the entire banking ecosystem. In these three-part digital series, Mustapha B Mugisa, Mr Strategy explores, bank 5.0 – a digital bank of the future. An advanced digital bank keeps customers away from the banking hall. That is the kind…
Dealing With Guilt
What is guilt? We can define guilt as an emotional experience which occurs when a person realizes that he/she has compromised their standards of conduct. This feeling is so disturbing mainly because of being closely related to remorse and shame. When guilt is suffocated, the reverse becomes obvious. Where guilt varnishes, the moral fibre breaks down systematically provoking rottenness from the inside of a person to the point of dismantling integrity. Any person needs to recognize and accept that he/she did something wrong and then confess it. The feeling guilt is a responsible inner bell which warns that something abnormal…
