(b)right Ideas
The videos and papers below are part of an award-winning collection of work. Our Founding Principal, David R. Koenig, was one of the first people to successfully link risk perceptions and risk governance to better corporate performance. His idea, Risk Capital as Commons was honored with one of the innaugural M-Prizes for management innovation.
The concepts reviewed below will change the way you think about governance, risk, and value.
Governance and Performance
An interview with David R. Koenig by the Loyola University Center for Integrated Risk Management and Corporate Governance.
Risk and Governance
A BrightTalk webinar that examines this critical intersection and how it is often misunderstood.
Risk Capital as a Commons
A discussion of this award-winning concept and the critically acclaimed book, Governance Reimagined, on the Trust Across America radio show.
Risk Governance
Rapidly Evolving Risk Landscape is a Growing Governance Challenge, Say Directors
As political and economic interactions become more complex, and as disruptive technologies and processes make innovation cycles massively shorter, boards of directors are paying more attention to risk.
The Governance of Risk
An introduction to the special issue of the Journal of Risk Management in Financial Institutions on Risk Governance.
Are Board Risk Committees Becoming a Fiduciary Expectation?
An article from the Conference Board of Canada's Risk Watch on the increasing expectation from investors that boards establish formal risk committees.
The Relationship Between Boards of Directors and Their Risk Management Organizations
A survey and review of board risk governance practices (2008)
Guiding Principles for Board Risk Committees
Board Risk Committee Best Practices - DCRO Members from 13 countries collaborated to develop these best practices for board Risk Committees.
Executives Speak Out on Corporate Governance
An article from Forbes where the author speaks with two highly influential former executives regarding the importance of corporate governance using the framework outlined in the book by David R. Koenig.
Divide and Conquer
An article about the conflicts a Chief Risk Officer faces when engaging in both oversight and advocacy.
Cyber Risk Governance a Key Responsibility for Boards of Directors
Amid growing demand for accountability and assurance that data, trade secrets, and infrastructure are secure from cyber- attacks, boards of directors often find themselves without clear guidance on their responsibilities as governors.
Guiding Principles for Cyber Risk Governance
Cyber Risk Governance Principles for Boards of Directors - Gudiance from an esteemed international committee to provide boards of directors with direction on governing this existential risk and for external parties to evaluate boards' practices.
Qualified Risk Director Guidelines
Identifying Qualified Risk Directors to serve on Boards - Guidance from a select committee of board directors and chief risk officers on how to better govern risk through the identification and recruitment of board members with special risk governance expertise.
Compensation and Risk
Aligning Compensation Systems with Risk Management Objectives
An exploration of the impact that poorly framed incentive structures can have on the value of organizations.
Governing the Link Between Pay, Performance, and Risk
As awareness of the link between incentives and employee behavior becomes more apparent, boards of directors have a responsibility to ensure that the proper risk-taking culture is being stimulated and not counteracted by the design of executive and employee incentive compensation plans that unintentionally encourage negative behaviors.
The Human Reaction to Risk and Opportunity
An exploration of the impact that human perceptions and reactions to risk have on value.
Guiding Principles for Board Compensation Committees
Compensation Committee Best Practices - Guidance from an international group of board directors, chief risk officers, and other C-level executives on how to best govern the link between pay, performance, and risk via board Compensation (Remuneration) Committees
Corporate Governance
Finding the Commons to Govern
Rather than reviewing reports on successes and failures - what read and react boards do - the next step for a board needs to be identification of the commons among the elements that drive success.
Moneyball Corporate Governance
An article on the paralells between the well-known Moneyball story and proper risk governance structures - creating value by altering the possible outcomes for your organization or investment portfolio.
The Governance of Value(s)
An article in the special issue of the Journal of Risk Management in Financial Institutions on Risk Governance.
The Most Interesting Debate in Corporate Governance is Happening in Real Time
The most interesting debate in corporate governance is not happening in the boardroom or between activist owners and boards. Rather, it’s happening all across a field of public (aka “permissionless”) blockchains.
Risk Management
Risk Management is Freedom
Many people in risk management
are defensive about risk, or they fear it. I seek to give organizations
a better understanding of risk so they can handle it confidently and
better achieve their goals.
An Introduction to Enterprise Risk Management
An article on the importance of changing enterprise risk management from a focus on the downside to inclusion of the pursuit of gain.
Business Line Advocacy - The Evolution of Risk Management
An article on the evolution of risk managers towards aiding in the creation of value.
The Blind Spots of Risk Management
An article in the special issue of the Journal of Risk Management in Financial Institutions about potential failures in the governance of risk.
Risk Management as Value Added
An article on the way in which effective risk management can add value to organization.
Accounting for the Cost of Risk Management
An editorial on the potential cost of risk management on innovation.
Reshaping the Distribution of Outcomes, Not Just Modeling Them
Ultimately, the work of risk managers is about preserving and enhancing the ability for organizations to create value.
Using The Value Equation To Exchange Cash Flows And Risk For Better Outcomes
Learn how to apply the Value Equation in equity valuation, how equity cash flows are similar to mortage-backed-security cash flows, and how risk expectations can distort portfolio performance.
Other Thoughts
Congress is Broken – Does the Solution Come from Random Numbers?
An article discussing the power of random numbers in ridding the U.S. election system of gerrymandreing.
Better than ESG
Governance is a measure of trustworthiness and even further, governance is a measure of the respect that companies have for their owners and other providers of critical capital. I’ve long stated that governance is much broader than the G that populates ESG ratings which have become so popular. In fact, ESG is more accurately described as a subset of what constitutes governance, not vice versa. What did 2018 reveal about this mindset?