About BWise

Blog

Do not mistake the dashboard for the windshield

September 29, 2015 by
Filed under: General, Risk Management

Who drives a car while only looking at his or her dashboard? Well, if you did, you would not drive for long. People driving a car are constantly monitoring the outside world. They look for people crossing the road, they look how the road goes, at the road surface, and they look for roadblocks, red traffic lights and so on. Every now and then, they look at the dashboard to see if there is anything of concern. They may look at the speedometer to see whether they are driving too fast. Well, in risk management terms, one could say people are checking whether they are still within their risk appetite limits.
Some drive fast because they are either careless, do not care or just know, or think they know, where the speeds traps are. Some drive slower because their risk appetite with respect to speed and traffic fines is lower. But generally, it is better to look outside than just to look at the dashboard. There will be an orange light when the fuel is almost empty. A good example of a properly defined KRI; nobody would like a fuel indicator that would only blink when the tank is completely empty. Still, many KRI's that people use could be compared to being parked in the emergency lane with no fuel, with at best, the good feeling that one knows why because the indicator tells you “you've just ran out of gas.” Sometimes, for some KRI's, that is the only possibility, as they cannot be early indicators.

People occasionally look at their dashboard and continuously monitor the outside world, in other words, what is going on. This is much as it should be in business and risk management as well. The risk management dashboard should help doing business, indicating things going well and things going not so well. Despite all the automotive innovations, the car dashboard has not yet replaced the driver. Technology is constantly becoming more intelligent, but an automatically driving car is still in development mode. And knowing that running a business is much more difficult than driving a car, we should not overstate the power of the dashboard. We will keep on innovating, finding new ways to facilitate business, but in the meantime, please recognize that the risk dashboard is a dashboard, certainly nothing less, but also nothing more.

Tags:

More Information

What is GRC?

Read the definition of Governance, Risk and Compliance


Gartner ORM report

Nasdaq's BWise has been positioned as a Leader in Gartner's Magic Quadrant for Operational Risk Management Report, 2015. 


Forrester report

Forrester positioned Nasdaq BWise as a Leader in New Report, The Forrester Wave™: Governance, Risk, And Compliance Platforms, Q1 2016.


Why BWise

Download the brochure: Three Key Reasons why Hundreds of Customers Rely on Nasdaq BWise.

Scroll up