Effective Boards go well beyond annual exercises to create and review risk registers. They actively sponsor and co-ordinate the continuous collection of perceptions and insights from all stakeholder groups in order to exploit upside risk by developing prescience. Instead of viewing risk as a series of discrete events and their consequences, they address aggregated risk in their strategic thinking processes.
The CTTG A6 facilitator question set:
Appetite
What categories of risk are you prepared to consider and to what extent?
Anticipate
What events might occur and how can you scan for early warning?
Analyse
How will you qualify risks to identify their potential causes and consequences?
Act
What needs to be done to exploit or mitigate each event and aggregated impacts?
Assess
How will you monitor the impact and consequences of events?
Adapt
How will you capture risk learning to inform future risk decision making?
Cutting Through the Grey 