Risk Scorecard

Many risks are undervalued

Your biggest risks can only become visible when you align them to your strategy

Manage Risk

While considering strategy

Risk eats strategy for breakfast… but all risks are the offspring of strategy. More simply, every strategic decision creates both new risks and reduces other risks.  Without seeing your strategy and/or risks in near real-time, you are flying blind as you make your day-to-day decisions.

The Pm2 Risk scorecard captures your strategy and assesses your risks so that they can be seen in strategic priority.  Now add Key Risk Indicators, and you have a Risk Scorecard.

Refined Methodology

For maximum benefit

The American Institute of CPA’s (AICPA) asked us to create this methodology so that CFOs could see risks in real-time, and finally run meetings that covered both risk & reward at the same time!

Our methodology has been licenced by international CPA organizations and implemented in both private and public sector organizations of all sizes and complexity.

We deliver our risk scorecard services in exciting workshops that both train your team and builds your first risk scorecard.

Rapid Risk

Rapid Risk

A day-by-day summary of our Rapid Risk Scorecard week.
(Click a day to see more)

Day 1 Day 2 Day 3 Day 4 Day 5

Day 1

  1. Identify the Strategic Priorities

    -Strategic Objectives
    -Cause-and-Effect Relationship
    -Priorities

  2. Strategy Map

    The strategy map is a one-page summary that ensures:

    -Everyone understands the strategy
    -Understanding of how success occurs
    -Efforts are focused on what matters
    -Everyone is aligned

  3. Risk Breakdown Structure

    Development of your Category-level risk areas allows:
    -Holistic cross-risk assessment
    -Top-down and Bottom-up risk assessment

Day 2

  1. Top-Down Risk Assessment

  2. Category Risk Assessment

    Leadership, the Board and other ‘top level’ players assess risks by category, providing:
    -A holistic cross-risk assessment
    -Top-down view of risk
    -Assessment without biases of recency, exposure, etc.

Day 3

  1. Bottom-Up Risk Assessment

  2. Risk Element Assessment

    Operational and front-line players assess risks from the risk register, providing:
    -A Bottom-up view of risk
    -Ability to reconcile top-down vs. bottom-up
    -Develop a holistic view of risk

 
 
 

Day 4

  1. Measuring & Monitoring Risk

  2. Risk Scorecards

    Adding Key Risk Indicators (KRI), Control Effectiveness Indicators (CEI) and Speed of Onset Indicators (SoO) reports are developed for all levels in the organization:
    -Integrating Risk and Reward into a single meeting
    -Providing near-real-time risk monitoring
    -Puts all risks into strategic context
    -Provides views by risk category, responsibility, geography, product, etc.

 

Day 5

  1. Risk Governance

    The Risk Scorecard allows management to manage risk and reward at the same time…which changes everything:
    -Management can make informed decisions about performance, projects, investment and strategy
    -Risks can be addressed before significant consequences, fines or failures
    -Risk/Reward become a daily activity owned by everyone
    -Employees can “earn points” for risk avoidance, not just risk resolution