Shifting Mindsets: How Mental Models Bridge the Executive–Risk Manager Divide in Quantitative Risk Analysis
This article explores how mental models can empower executives to integrate quantitative risk analysis into strategic decision-making. By translating complex statistical data into relatable concepts, risk professionals bridge the gap between executive intuition and analytical risk management. The use of mental models helps demystify probabilities, foster robust strategic conversations, and strengthen executive understanding of uncertainty and potential impact. Best practices include using tailored narratives, visual aids, executive education, and continuous feedback, all aimed at embedding quantitative risk thinking within board-level strategy. Ultimately, this approach builds a resilient, risk-informed leadership culture that turns uncertainty into opportunity.
The Power of Possibility: Transitioning from Deterministic to Stochastic Thinking for Strategic Risk Professionals
Stochastic thinking in risk management acknowledges uncertainty and the role of probability in shaping outcomes, moving beyond the single-scenario focus of deterministic models (EV, 2020; Investopedia, 2025). Embracing stochastic approaches enables risk professionals to simulate a spectrum of possible futures, quantify likelihoods, and enhance forecasting, scenario planning, and stress testing (PreventionWeb, 2021; GARP, 2023). This mindset delivers deeper insight for strategic decisions, supports resilience, and equips organisations to navigate today’s complexity and volatility more effectively than deterministic methods alone (Milliman, 2022; Perplexity, 2025).
Invisible Intruders: AI-Generated Scams and the Evolving Role of Risk Professionals
AI-driven fraud—especially through deepfakes and voice cloning—is reshaping the threat landscape for organisations and individuals in 2025. Fraudsters can now create highly realistic audio and video imitations using just seconds of publicly available recordings, enabling scams that bypass traditional security measures and exploit human trust. Voice-based phishing is now outpacing visual deepfakes, affecting everything from executive impersonation in corporate wire fraud to emotionally manipulative family scams. The technology’s accessibility allows even non-experts to launch sophisticated attacks, democratising fraud and scaling risks across sectors.
Detection technologies often lag behind the latest deepfake techniques, necessitating adaptive, multilayered defences and continuous staff training. Common red flags—urgency, unverified contact, and emotionally charged requests—are more challenging to spot amid such realism, making independent verification and a culture of scepticism essential. As financial and reputational risks mount, a robust risk management response combining technical controls, human vigilance, and regulatory awareness is crucial for protecting trust, identity, and organisational integrity.
The Pulse of Change: Why Regulatory Complexity is the New Strategic Battleground
Regulatory complexity is intensifying due to rapid technological, environmental, and societal changes. Risk professionals must leverage RegTech—especially AI and blockchain—to streamline compliance, enhance resilience, and create strategic value. Success requires integrating technology, fostering compliance culture, and proactive engagement with evolving regulations and stakeholders to maintain competitive advantage.
Resilience is Not Optional: Why Talent Retention Risk is the New Battleground for Strategic Leaders
The article explores talent retention risk within VUCA and BANI environments, highlighting how volatility, anxiety, and non-linearity amplify employee attrition threats. It provides risk professionals with advanced frameworks, analytics, and strategies to integrate retention risk into enterprise risk management, ensuring organisational resilience and sustainable human capital in turbulent times.
The benefits of agile risk management in IT projects delivered through agile methodology
Digital transformation and external digital disruption require South African financial services to deliver large IT software projects. Banks adopted new ways of working such as using an agile methodology to ensure IT Projects are delivered faster-to-market and early client involvement. The challenge is that risk management functions are not mandatorily involved before and during the execution of IT projects by the Scrum teams who deliver these IT projects, which means that other sources of risk and opportunity risks may not be identified early.
Cybersecurity Risk Management in Agile development: Protecting Data and System
The rapid evolution of technology and the increasing complexity of systems have made cybersecurity a critical concern for organizations, particularly in the context of Agile development. Agile methodologies prioritize flexibility, collaboration, and iterative progress, which can inadvertently introduce unique cybersecurity risks. This paper explores the integration of cybersecurity risk management practices within Agile development frameworks, emphasizing the need for organizations to proactively address vulnerabilities while maintaining the agility of their development processes.
Risk science offers an integrated approach to resilience
Why do we hear calls to separate and independently manage aspects of risk and resilience that are inherently related? These
arguments are inconsistent with more holistic and integrated responses to wicked challenges—such as climate change—that
are necessary if we are to find balances and synergies. The justification of such views is based on misconceptions of risk science that are no longer accurate. Rather than being irrelevant, the risk concept and related literature provide a wealth of resilience analysis resources that are potentially being overlooked. In this Perspective, we discuss how the modern view of risk can provide an integrated framework for the key aspects of resilience.
Bridging Silos, Building Resilience: The Evolution of Combined Assurance
Combined assurance integrates internal and external assurance efforts, providing a holistic, efficient, and agile approach to risk management in today’s volatile, uncertain, complex, and ambiguous (VUCA) and brittle, anxious, non-linear, incomprehensible (BANI) world. It enhances governance, stakeholder confidence, and organisational resilience, enabling informed decision-making and regulatory compliance.