Process’], the BASEL Accord and rules book, all of which focused on the prevention of problems [risk management] and less about the upside of risk. “Data shows that today we have more banks and unpublicised companies in the financial sector failing to achieve their purpose and eventually going out of business, therefore increasing the pressures on the economy. “As with other major global downside events, COVID-19 stress tested the whole world, exposing the depreciated value of risk’s inability to spike financial growth in the economy. “The good news is that there are a few new leaders of risk who are working to change this. Business leaders need to take the risk and work with these disruptive risk leaders who have broken the stigma of risk if they are to safeguard the lives of the people in the economy they serve. After all, that what it boils down to - the lives of people and protecting their livelihood.” In your book, ‘For the Love of Purpose’, you talk about the importance of defining your purpose to achieve desired results, be it overcoming internal crisis or driving revenue growth. How can business leaders shift their perception and understanding of risk to align with this approach? “Business leaders first need to know that risk is about the achievement of purpose. They can be subject matter experts in the roles they play but, to achieve growth and manage the associated challenges, everything they do in the business has to be aligned with its purpose. “Businesses must be constantly analysing their activities to ensure they are heading towards the direction of what the company has set out to achieve. If there is one thing business leaders need to learn, it is the correct definition of risk and that is “a person or an entity with a purpose”. “When they change their mindset to this correct view of risk, businesses become more dynamic by firing all cylinders of risk and not flying their ‘companies’ on one engine. “Business leaders need to take a less traditional approach to risk. It’s been proven time and time again that it doesn’t work, and we are counting down to the next bank failure as we speak. “The sooner business leaders learn and apply risk correctly, the sooner they can build resilience, sustainability, and value not just for their organisations but for the economy.” Banking & Financial Services 54 Finance Monthly.
RkJQdWJsaXNoZXIy Mjk3Mzkz