How HUD approaches enterprise risk management
Larry Koskinen, chief risk officer at the Department of Housing and Urban Development, discusses using ERM strategies for shared services, and why risk work is “complicated.”
The Department of Housing and Urban Development is diving headfirst into developing enterprise risk management strategies. The agency is looking to utilize enterprise risk management strategies in deploying shared services. Larry Koskinen, chief risk officer at HUD, told Government Matters at the 2018 Association of Federal Enterprise Risk Management Summit in Washington D.C. that the difficulty of ERM is all in the decision-making.
“Risk work is not technically difficult. What it is, is hard. It is hard because it involves tough decisions that, generally speaking, have not been made. We find ourselves all the time dealing with subject matter that is not just complicated, but politically friction‑filled. This is really challenging,” Koskinen said. “If you’ve not been in a risk meeting that involved raised voices and occasionally standing up and raising voices, then you’re probably doing list management, not risk management. The first thing I would say to a new risk manager is prepare for the friction. It’s going to come, and celebrate it when does come because it means you’re doing real risk work. Don’t shy from that.”