Talking Risk

Chapter 8

Not at all, I am actually enjoying these meetings and learning a lot.

You make it sound like you don’t want to be here.

I don’t know everything. I’ve gotten new perspectives, new information and a lot of food for thought.

What could you possibly be learning when you are the one answering all the questions?

So here we are again!

Strategic risks refer to the negative effect of a perceived or actual failure to deliver on the strategic initiatives. You already know about reputational risk.

Well while you in the thinking mode, tell me what you think about the risk of the Bank not delivering all those things in the Strategic Plan?

Well that speaks directly to strategic and reputational risks.

You going wait for me to tell you break that down? You should know the drill by now.

Well if that’s your version of break down ... how do you assess this strategic risk?

You have to assess each strategic objective separately. The impact would vary from one to the next.

So each project has a different impact. What about the likelihood?

I would think that if the Bank fails to meet those objectives that are more likely to directly affect the people of the ECCU, that’s where the impact would be higher.

You got that right! One thing people don’t forget is when you say you going do something for them and then you don’t do it! Ask any politician!

In each case, it depends on whether or not the Bank has control over the event that may cause the delay or non- delivery.