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Prof. Dr. Stefan Hunziker is Professor of Enterprise Risk Management and Internal Control Systems at the Lucerne University of Applied Sciences and Arts, Institute of Financial Services Zug IFZ.
The evolving landscape of geopolitical tensions, technological innovations, and heightened regulation necessitates a fundamental shift in how organizations perceive and manage risks. This assertion is further corroborated by the recently published ERM Report 2025, a collaborative study conducted by the Lucerne University of Applied Sciences and Arts and the Kiel University of Applied Sciences, with Swiss GRC as a key partner.
In a recently released analysis, Prof. Dr. Stefan Hunziker, a Professor of Risk Management at the Lucerne University of Applied Sciences (HSLU), posits that these developments call for a redefined understanding of the significance of risk management in both leadership and strategic decision-making.
His insights are featured in the second edition of the GRC Compass, a quarterly thought leadership publication from Swiss GRC that unites prominent voices within the global governance, risk, and compliance sphere. Hunziker also serves as an Advisory Board Member at Swiss GRC, blending academic insights with practical experience.
Hunziker notes that while numerous organizations have implemented comprehensive risk processes, these often fail to integrate into essential strategic dialogues. Despite the abundance of data, meaningful insights remain elusive. A principal factor in this disconnect is that risks are generally presented in ways that do not align with leaders’ inherent understanding of uncertainty.
Drawing on insights from psychology, cognitive science, and decision-making research, Hunziker highlights that individuals grasp uncertainty through narratives, causal links, and scenarios—rather than through isolated statistics. Distributions offer a more realistic and contextually relevant basis for decision-making, making underlying assumptions transparent. When uncertainty is effectively woven into strategy formulation, performance management, and investment choices, risk management transitions from a mere administrative function to a vital leadership competency.
This viewpoint reinforces the strategic focus of Swiss GRC, a premier Swiss provider of GRC software with an expanding international footprint. Through the GRC Compass, Swiss GRC promotes global professional networking and cultivates a comprehensive understanding of risk as a strategic asset.
The second edition of the GRC Compass is now available for download:
When Risk Management Becomes Pure Pleasure: Rethinking a Misunderstood Discipline
