Risk management systems are managed according to many different principles but there are three principles that risk management best practice suggests should always be observed. They are that a risk management system must always:
- be customized to its organization and their risk;
- adapt appropriately to change; and
- be demonstrably effective.
BOKRIM solves the main problems that currently prevent SAM risk management systems from observing these principles. The problems are:
Henry Thoreau wrote: “In the long run, men hit only what they aim at. Therefore, though they should fail immediately, they had better aim at something high.” The mandatory rules governing how most organizations currently manage SAM risk seek only to ensure SAM risk isn’t managed poorly. BOKRIM enables organizations to manage SAM risk well because minors and vulnerable adults should be well protected, not ‘not badly’ protected.
Identifying and deciding how to respond to change in all the ways change can happen requires resources and expertise few organizations possess or can justify full-time.
The impact of cognitive biases on SAM risk management can be profound.
Based on the activities BOKRIM has identified, a comprehensive SAM risk management system can involve over 20 different areas of activity. Organizations complying with rules on the other hand, are rarely active in more than 8 to 10 areas, while some mandatory rules have as few as 5.
Because SAM risk is constantly increasing, SAM risk management needs to constantly improve. Without information, measurement, expertise, and appropriate resources, constant improvement is impossible.
To successfully manage SAM risk requires the careful coordination of people, activities, cycles, and information across and outside an organization. BOKRIM provides a central hub for this coordination.
The value of the budgeted costs of managing SAM risk are unclear and the un-budgeted and intangible costs of SAM are high and rising.
SAM risk managers usually have little opportunity to obtain formal risk management training.
There is currently no reliable information on SAM risk or risk management. Effective management and improvement is only feasible with reliable information.
SAM risk management is rarely anyone’s primary responsibility and is often fitted around their primary role.