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In this Risk Intel podcast, host Edward Vincent invited Craig Hartman, the Chairman and CEO of Plansmith, on to the show for a compelling three-part series on a topic central to every financial institution’s success: Execution Risk. This first episode lays the groundwork, exploring what execution risk is, why it matters to all banks, and how it emerges as an umbrella for all types of risk that touches nearly every aspect of strategic and operational activity. Listen to the full episode or read the summary below to learn more.
Craig Hartman’s journey into financial planning is anything but traditional. An engineer by training, Craig’s early career saw him teaching himself programming before launching a software company that eventually pivoted into the banking sector. He then later decided to start his own company to service the banking industry, creating the first interactive bank planning system in the country.
His hands-on experience building forecasting tools, bank planning models, and budgeting software over five decades has given him rare insight into the gaps between planning and executing. This real-world expertise anchors this episode's conversation around "execution risk," a risk that Craig argues is often overlooked but deeply consequential.
Execution risk is the possibility that a plan, strategy, or project will not be carried out as intended. This gap between planning and execution can result in missed deadlines, cost overruns, strategic failure, and declining morale. Think of all the times you have spent days building out a plan, but it just sat on a shelf collecting dust all year.
Craig echoes this throughout the episode: “Execution risk really is all-encompassing,” he explains. “Regardless of whether you're talking about liquidity risk, interest rate risk, or cyber, all of it hinges on whether you actually follow through.”
One of the most powerful takeaways from Craig’s commentary is how deeply ingrained execution failures are in the financial industry. He recalls watching banks spend months crafting annual budgets, only to abandon them after the planning meeting.
“They put that into the system… and then they go back to work,” Craig says. “That’s it. One and done.”
The consequence? Institutions fall short of their goals without understanding why. He urges institutions to reframe planning as a continuous, iterative process. “The budget is not the plan. The plan is everything that goes into making those numbers work, the resources, timing, and accountability,” Craig asserts.
To learn more about the impacts of hidden costs, check this episode on: Unearthing Hidden Factories: Essential Diagnostic Questions for Financial Institutions.
Toward the end of the episode, Craig makes an important distinction: “Strategic risk is picking the wrong plan. Execution risk is failing to deliver on a good one.” This underscores a harsh reality: even the smartest strategy can fail without strong execution.
An anecdote from the 1980s illustrates this. A bank Craig previously worked with had a chairman that heard precious metal, gold, and silver were going to skyrocket in value. He approached the heads of all seven branches and presented the idea to buy gold and previous metals, save them, then sell when the value skyrockets. The idea was unanimously rejected by the heads of the branches. Later, the chairman pushed to reconsider, investments were made, and eventually the investment paid off handsomely.
A strategic plan doesn’t always execute if there’s not buy in and support from the top. In this example, if the chairman hadn’t pushed them to reconsider, the banks would have lost the opportunity for an excellent investment.
Craig also spotlights a pervasive issue in today's banking culture: the reluctance to revise budgets mid-year. “There was a philosophy that said you never change the budget,” he notes. “But people translated that to never change the plan, even when conditions change.” Plans can be iterative and can or should change as the business needs evolve.
Craig advocates for continuous planning and real-time reforecasting.
He compares planning to driving a car: “You’ve got your rearview mirror, your dashboard, and your windshield. You don’t just drive based on what happened yesterday.”
Tools like dynamic reforecasting, performance dashboards, and active risk modeling are essential components of a modern financial planning framework. Tools like Plansmith enhance these capabilities by enabling rolling forecasts, integrating scenario-based budgeting, offering board-ready visual dashboards, and aligning capital planning with risk metrics.
This first episode on Execution Risk 101, sets the stage for the rest of the series. Next, Craig and Ed will explore how financial institutions can actively mitigate execution risk through better tools, tighter accountability, and smarter governance. We look forward to having Craig back on the show to dive into mitigation strategies that help bridge the gap between vision and results.
For over 50 years, Plansmith has empowered banks and credit unions with the software and advisory services they need to plan confidently, perform strategically, and grow sustainably. In a constantly evolving industry, Plansmith helps financial institutions stay competitive by combining proven tools, expert guidance, and personalized support. Whether through intuitive planning software or experienced consulting, our mission is to help clients exceed performance goals and stay relevant in the marketplace. Learn more here
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