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Harnessing the future Horizon scanning is often talked about as an effective tool in identifying emerging risk – a new guide by IRM offers practical advice on the advantages of this approach for risk managers
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he varieties and uses of managers can source such information, Institute of Risk Management horizon scanning are spelt out including listening to the views of for risk managers in IRM’s new futurists, reading information from Horizon Scanning: Practitioner’s guide to horizon professional bodies and industry leaders, A Practitioner’s Guide Produced by the Innovation Special Interest Group of the scanning. Published by the and keeping an eye on competitors. Institute of Risk Management IRM’s Innovation Special Interest Group (SIG), the guide offers advice on how risk Communicating the managers can increase the resilience results effectively and reliability of their organisations by challenging assumptions and reviewing Effective communication and consultation the ways that events could unfurl. are essential to ensure that key The new guide recognises that there stakeholders and those responsible for are many definitions of horizon scanning, managing risk understand the basis ranging from an organised and formal on which decisions are made and why process of gathering, analysing and particular options for action are selected. disseminating value-added information to In capturing emerging risks on the support decision making, to exploration horizon, risk managers should develop of what the future might look like to a framework for categorising them in understand uncertainties better and order to develop a system of review, and assess their to analyse whether the organisation is adequately potential impact on the business in the context of the prepared for potential opportunities and threats. risk appetite of the organisation. This should include At its heart, horizon scanning is an alerting and the predicted time to impact to help determine the creative activity used to identify emerging issues and need for a response and the relevant timeframe. potential causes of uncertainty, ensuring companies can The guide offers advice on the best way to present make adequate preparations, exploit opportunities and information to boards and make sure the analysis survive threats. It is not about predicting the future. stands up to scrutiny. This will help risk managers to clearly articulate the importance of assessing the risks on the horizon against the organisational risk Looking outside of your own organisation appetite, and to encourage a balance between risk optimisation and reward for acceptable risks. An important element of horizon scanning is the With an ever greater need for horizon scanning consideration of information from outside the organisation – as the world we live in grapples with the impact that can’t be found in internal data sources. Looking of technological and demographic changes – risk outside at what is happening in the wider world, or managers should take an enhanced role as the ‘scanning the landscape’, enables a company to see owner of this technique, and this guide outlines the what is coming over the horizon which could adversely simple steps to getting the process started. affect its future commercial or other success, and perhaps identify a new direction to take which would give it an advantage in the future market place. To download a copy of the guide, visit: The guide outlines a number of ways in which risk https://bit.ly/2EeR5HN Developing risk professionals
Winter 2018
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