High-Quality Conversations

Discussions that challenge assumptions, explore multiple perspectives, consider both opportunities and threats, and lead to better-informed decisions. In RBPM, high-quality conversations are a characteristic of a strategy-focused, risk-aware culture. They occur when people have access to relevant information about performance and risk, feel psychologically safe to raise concerns or challenging questions, and are motivated to find optimal solutions that balance risk and reward. Such conversations are essential for aligning risk-taking with strategy and operating within appetite.

Hazard Risk

Risks associated with accidental losses, such as those arising from natural disasters, accidents, fire, property damage, or liability claims. Hazard risks traditionally formed the core focus of insurance-based risk management before the emergence of more comprehensive approaches. Within RBPM, hazard risks are typically managed through a combination of preventive controls, contingency planning, and risk transfer mechanisms like insurance. While less directly connected to strategy than other risk types, major hazard events can significantly disrupt strategic execution if not properly managed.