In the previous article (Risk Article #6), I stated:  “When I began to practice the assessment and management of risk, it became blatantly obvious right off that the main challenges were not procedural or technical, but were behavioral, cultural, and organizational.  My latest book:  Modern Corporate Risk Management: A Blueprint for Positive Change and Effectiveness tries to address the issues related to implementation of the risk methods.  So, in these remaining articles, I will focus on how to get people and organizations to take up risk management.” 

In that 6th article, I indicated that we typically get rewarded for successfully launching projects, but not necessarily for launching successful projects. I noted that in past articles I have reflected on risk-management-implementation hurdles such as the reward system and inconsistent language and would in Article #6 focus on another implementation impediment – that of the inability to implement.  In this 7th article in the series I will add to this list the challenges related to a lack of risk monetization.

Although the term “risk monetization” might suggest that a risk is converted directly into money, that is not necessarily the case.  Corporate decisions largely are based on consideration of money in one way or another, so, in the end, risks should ultimately impact the perceived value of the project.  However, along the way, the risk might initially be converted into a “non-money” parameter such as time delay, reputation impact, or another metric that is not measured directly in monetary units such as dollars. 

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About the Author Glenn R. Koller, PhD Dr. Glenn Koller received his Ph.D. in geochemistry/geophysics from Syracuse University.  In his career Glenn has held positions with the Department of Energy, DuPont, Amoco, BP, and Schlumberger.  Glenn’s primary focus for the past 20 years has been on aspects of risk-and-uncertainty analysis, management, and training.  Responsibilities included implementation of risk-assessment/management technologies and processes; development of statistical routines that comprise risk systems; marketing risk technology; and performing technical and consulting services.  Areas of responsibility include business and product development, environmental concerns, ranking and prioritization of projects and products, analysis of legal commercial, security, logistical, financial etc. scenarios and other aspects of a diversified business.  Glenn has authored four books on risk/uncertainty and currently resides in Tulsa, Oklahoma.  Glenn may be contacted at riskaid@cox.net.

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