Risk Management

In a world where risks are ever-more apparent, how well prepared is your organization to anticipate, manage and mitigate risk? Adapting to external threats, such as the COVID-19 pandemic, requires a serious commitment to strategic risk management.

LRI’s consultants facilitate in-depth planning processes that engage and enable your organization to identify and prioritize the most important risks you face. We help you take stock of the key building blocks of your organization – its economics, business context, organizational capabilities, and technology infrastructure.

We utilize our skills in change management, facilitation, and project management to help you develop and embed the mitigation plans you need. We also help you understand the interplay of your mitigation measures so that you can respond to both foreseen and unforeseen events.

Here’s an overview of our approach:

First: We work with an enterprise-wide team (or teams) to develop an initial heat risk map. This identifies and categorizes various risks both by probability and severity. The risk areas we look at typically include:

  • Strategic Risk: e.g. competitive positioning, trends in technology and workforce availability;
  • Compliance Risk: e.g. product and service standards
  • Financial Risk: e.g. credit rating and access to adequate capital;
  • Operational Risk: e.g. people, processes, and systems;
  • Environmental Risk: e.g. health and safety; climate and weather;
  • Reputation Risk: e.g. fraud, employee espionage, disaster response.

Second: Once your risk heat map is developed, we facilitate discussions and decisions about preparedness. How well do we understand a given area of risk? What steps have already been taken to mitigate it? Do we think those are sufficient? How often do we need to refresh them?

Third: We facilitate the development of clear, documented business processes to assure your organization maintains a focus on enterprise risk management. As part of this, we engage in the change management needed to embed the processes. We also identify leading indicators to give you an early warning that your strategic risk management plan may itself be at risk.

Terms of art we use include:

  • Enterprise Risk Management (ERM) is a comprehensive process that enables an organization to efficiently manage its risks so that it can achieve its stated business goals and objectives.
  • Key Risk Indicators (KRIs) are measures used to indicate how risky an activity is and whether the organization is subject to – or has a high probability of being subject to – a risk that exceeds defined levels.
  • Performance Management Scorecards are reports that provide meaningful data on an organization’s operations and performance – and which can be used to draw attention to KRIs.
  • Reduction to Practice refers to a method of converting subjective estimations of likelihood and costs into calibrated, numeric metrics with confidence intervals, setting the stage for the whole team to work from a common vocabulary towards common goals.

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Early Edge California

The counsel I received from LRI on communication and change management allowed me to successfully lead my organization through critical decision points. My coach helped me ask the right questions and assess whether my organizational capacities matched those required to drive our desired strategies.


Eric Douglas has accomplished what many in his profession have not: he’s mastered the ability to under-engineer the highly complex organizational change process. By simplifying the process and employing an intimate and open approach, he’s earned the trust and respect of our entire executive team. His success in identifying, distilling, and simplifying issues allows him to provide our team with a sophisticated, yet pragmatic array of easy-to-access tools that are tailored to our needs and that we’re able to put to work right away.

University of California Press

LRI helped us experience a real change in the way that we do planning and resolve problems. It made it possible for us to say exactly what we wanted to say, and for others to hear exactly what we said. Looking back, I wonder why we didn’t do this before.