Good risk management never goes out of style—it just evolves.
Here at Ncontracts we may not be hip to the latest TikTok or influencer trends, but we know good risk management when we see it.
Outdated risk management is never cool. Staying stuck in the past exposes your bank, credit union, mortgage company, or fintech to increased risk—and the worst part is you might not even realize it.
Is your risk management on target or falling behind? We created this chart to let you know what’s in and what’s out when it comes to risk management.
|
Out |
In |
|
Risk management via spreadsheet |
Integrated risk management |
|
Avoiding all risk |
Seeing potential business opportunities |
|
Lackluster governance |
Tone from the top = risk management culture |
|
Setting strategy with gut instinct |
Risk informing strategy |
|
Learning lessons the hard way |
Looking before you leap |
|
Building the plane while you're flying it |
Planning ahead |
|
Treating all risks the same |
Prioritizing resource allocation |
|
Not measuring risk |
Quantifying risk |
|
Risk management Whack-A-Mole |
Catching and mitigating risk early |
|
Sacrificing long-term goals for short-term gains |
Aligning incentives with strategic goals |
|
Herding cats |
Leveraging each other's work |
|
Thinking about risk at the end of a process |
Baking risk management into business development |
|
ERM as a game of "gotcha" |
ERM as a second line of defense |
|
Reporting as the finish line |
Reporting as a jumping off point |
Worried that you’re a risk management cheug? Need help keeping up with the evolution of risk management? It’s okay. We’re here to help. Check out our on-demand webinar Risk Assessments: Making the Most of Your FI’s Secret Weapon.