Recently, I spent half a day with a group of corporate directorsand C-suite executives, discussing the intersection of riskmanagement and strategy. We talked about big risks facing allorganizations, sector-specific risks, and risks related to domesticand international security, the financial meltdown in Greece, cyberthreats, natural catastrophes such as the drought in California,and the fight for talent, among other topics.

This led to a robust debate concerning the value of riskmanagement in dealing with real life. The general conclusion: Areasonable amount of good risk management is better than no riskmanagement, but too much poor risk management hurts an organizationby encumbering resources, slowing decision processes and givingleaders—and the board and other stakeholders—a false sense ofsecurity. I'm confident this will sound familiar to many riskmanagement professionals.

Nimble, meaningful risk-awareness

By the time the session ended, the “wish list” from theseexecutive leaders and board members was pretty simple. In essence,they would like the discipline of risk management to focus on twothings: one, helping organizations pursue current and plannedopportunities in a nimble risk-aware fashion; and two, helpingleaders see the big risks around the corner in time to do somethingmeaningful about them, whether avoidance or mitigation, or bettercrisis management. This desire to focus on understanding big risksis to be expected, particularly when discussions turn to risks thatcould cause significant economic or physical harm.

The reality is that corporations face risks of all types andsizes every day. Whether we seek to manage these risks proactivelyor we just let the chips fall where they may, we will deal with theresults eventually. At the organizational level, the riskmanagement process is important and valuable when designed forefficiency, effectiveness, and fit with other corporatedisciplines. Entrepreneurial spirit does not thrive in culturesthat are fearful of taking manageable risk, or otherwise mired inpaperwork and process.

Risk resiliency

In the broader context of corporate governance, robustcommitment to the discipline of risk management and the practicalaspects of risk resiliency should also enable organizations tofulfill their formal and informal corporate socialresponsibilities.

What might matter most at this point is the broader discussionof risk resiliency—the ability to act sensibly when presented withnew information regarding a threat or an opportunity—and relatedaspects of decision culture and leadership, including leadershipalignment and management/board alignment. When risks are complexand evolving, having a head start in understanding and respondingto threats and opportunities can make a big difference in anorganization's financial, human and reputational results. In thebroader context of corporate governance, robust commitment to thediscipline of risk management and the practical aspects of riskresiliency should also enable organizations to fulfill their formaland informal corporate social responsibilities.