Re-acquaintance with Risk Management

'Not having enough knowledge on risk management' is one of my biggest risk for my thesis. Interestingly, I had a little discussion with Alec and Dennis whether this is a worry, issue or risk... (which is really confusing me right now!).

To manage this worry/issue/risk (of not having sufficient knowledge) I realise I need to read about risk management on a deeper level. I have read some books on risk management process for my module assignments, but this is the first time I'm approaching a book to understand the underlying philosophy of risk management.

To start with, I picked up a small undaunting thin book entitled "Exploiting Future Uncertainty: Creating Value from Risk" by David Hillson.
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A question on the first chapter directly caught my attention:

Can we prove a link between risk management practice and improved bottom-line outcomes? (Hillson, 2010)

This directly relates to the question I am trying to answer for my thesis:

How can UNDP improve its risk management practice to contribute towards achieving (country) programme outcomes?

Before I can correlate risk management practice and outcomes in the UNDP context, I need to know first if it is possible to relate risk management to results! Well, at least Hillson is convinced so. These are some insights from the first chapter of the book:

• "If we track performance, we should be able to see if there is any link between our ability to manage risk and success rate."
• From experience over time, it can be demonstrated that as risk management maturity and competence increases, so does success.
• It cannot be ascertained that investing in risk management correlates with lack of problems. But it can be measure how successful risk management creates additional value through maximising opportunities.

Sounds promising, I'm excited to read on!

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HILLSON, D. 2010. Exploiting future uncertainty : creating value from risk, Farnham, Surrey, England ; Burlington, Vt., Gower.