November 20, 2008David NicholsChief Administrative OfficerMSIM, Japan
Effective Risk Management
How to Keep Your Business Focused
Setting the Context – Why Am I Here?
Risk Managers’ Challenge – Important Versus Urgent
Important
NotImportant
Urgent Not Urgent
Where Risk Management Should be
Where Risk ManagementBecomes
Crisis Management
Risk Managers need to helpBusiness Managers stay out of these boxes
Here Is My Road Map for Today
• Getting up to the plate
• Take your best swing
• Play in the field• Make the team
look good
Getting up to the Plate
Know the Core Fundamentals of Your Business
• How do you create value? • What is your competitive advantage?• What do you need to survive as a
business?• Who are your customers and competitors?
Analyze Your Audience
Don’t Forget To Do Reconnaissance
Take Your Best Swing
Tailor Your Presentation to Your Audience
Write for the Reader
Speak for the Listener
Draw for the Viewer
• Parsimony– A goal to strive for– Two essential elements
• Succinct• Robust
• Keep your message focused and simple– How does effective risk management or lack
of it affect your core business?
Composing Your Message - Presentation Principles to Keep In Mind
Presentation Tools For Easier Understanding
• Use “active voice” in your slide titles- If you can’t tell a story, then the slide should
be modified or cut• Use analogies
- Paramedics’ ABC’s and Financial Services core functions
Include Key Elements in Every Presentation
• Recommendation – Put it up front
• Make the cost / benefit analysis very clear• Be clear what you need from your
audience– A Decision?– An Approval?
• Have supporting metrics at hand
• Pay attention to consistency – Past present AND future
• Footnote = CYA– Helps to prevent misunderstandings
• Be very careful with word choice– Don’t put yourself in a position to be
misinterpreted
Be Careful With Your Positioning
Round the Bases – Don’t Forget The Feedback Loop
Playing in the Field With the Rest of the Team
Be a Team Player
Surprises?
No Surprises
• Of course you’re going to tell the truth• How are you going to make your
colleagues look?
How You Say it Makes a Big Difference
• It was too cold
Legitimate Spin
• Weathered off the mountain
• He fainted • He experienced an episode of syncope
• Corrected errors • Updated the data
• Take the Blame– The buck stops with you
But….
• Share the Credit– Dilution does not devalue
Be Lavish With Your Praise
Important Message Delivered
Important
NotImportant
Urgent Not Urgent
Where Risk Management Should be
Where Risk ManagementBecomes
Crisis Management
Risk Managers need to helpBusiness Managers stay out of these boxes
Important Message Delivered
Important
NotImportant
Urgent Not Urgent
Where Risk Management Should be
Where Risk ManagementBecomes
Crisis Management
Risk Managers need to helpBusiness Managers stay out of these boxes
November 20, 2008David NicholsChief Administrative OfficerMSIM, Japan
Effective Risk Management
How to Keep Your Business Focused