Too many executives think risk management is strictly for technical specialists. In Risk Intelligence: Learning to Manage What We Don&;t Know, David Apgar challenges this misconception. The author explains how to raise the quality of your risk analysis—-thus enhancing your “risk IQ&;—-by applying four simple rules:
1) Recognize which risks are learnable—and reduce their uncertainty by discovering more about them.
2) Identify risks you can learn about the fastest. The higher your learning speed, the more a project is worth pursuing.
3) Take on risky projects one at a time—learning about the risks underlying each before moving to the next.
4) Build networks of business partners, suppliers, and customers who can collectively manage new ventures&; risks by playing distinct roles.
The book provides two tools for improving your risk IQ—the Risk Intelligence Audit and the Risk Scorecard—and concludes with a 10-step action plan for systematically raising your managerial and organizational risk IQ. Your reward? Smarter business decisions over time.
David Apgar is a managing director of the Corporate Executive Board, a best practices research organization serving senior executives at more than 2,500 leading institutions worldwide. He has incorporated the ideas of Risk Intelligence in a course on Risk Management and Development at Johns Hopkins&; School of Advanced International Studies. He lives in Washington, DC.