S3 | E21: Mind the Gap: Mitigating Execution Risk

In Part 2 of our Risk Intel podcast series with our partners at Plansmith, Edward Vincent welcomed back Craig Hartman, Chairman and CEO of Plansmith, to explore a question that resonates with every financial leader: Once you’ve identified execution risk, how do you actually reduce it? Craig’s decades of experience helping banks and credit unions navigate planning and budgeting challenges make him uniquely equipped to answer this question. In this episode, he shares actionable insights on how organizations can move beyond simply naming their risks to building a culture that consistently mitigates them. Listen to the full episode or read the summary below to learn more.

From Recognition to Mitigation

“Execution risk is an umbrella over all types of risk,” Craig emphasizes, a reminder that identifying risk is only step one. The real work begins when institutions ask themselves: What’s the impact of these risks, and what can we do about it?

He outlines a clear starting point: capture everything. Leaders must ask whether roles are clear, resources are adequate, goals are realistic, and external factors have been considered. This aligns with indsutry best practices, as Craig suggested to document specific risk factors, prioritize them, and maintain an active risk register.

As Craig put it, “Just capturing all of that… getting that down on paper… is certainly a logical starting point.”

The Importance of Corporate Memory

One theme Craig returns to repeatedly is the idea of “corporate memory.” Whether you use AI tools or internal knowledge bases, recording what has worked, and what hasn’t, can be invaluable.

“AI is only as valuable as all of those inputs,” he says, highlighting that organizations must train their systems (and their people) to learn from experience. This can help avoid repeating failed strategies and reinforce successful approaches.

Monitoring and Feedback Loops

After identifying sources of execution risk, the next step is continuous monitoring. Craig draws an analogy to driving: you’re constantly checking your rearview mirror, your dashboard, and your windshield to stay oriented. Similarly, in banking, leaders need to keep their thumb on the pulse of:

• Internal shifts (resource limitations, turnover, emerging skill gaps)
• External factors (regulatory changes, demographic trends, economic pressures)
• Plan performance (variance analysis and real-time data)

“Agility and flexibility… those are all key ways to control the direction you’re going,” Craig says.

This approach mirrors recommendations from the execution risk guide, which he advises frequent milestone reviews, scenario planning, and updating mitigation strategies.

Governance, Ownership, and Accountability

Effective project governance also plays a central role in mitigating execution risk. Craig notes that clarity around ownership is essential, but so is fostering a culture where teams feel safe surfacing challenges.

“Sometimes things aren’t working,” he acknowledges. “And too often, we’re afraid to expose ourselves to the fact that something’s not working… You have to give them a chance to say, ‘I’m really having a problem here.’”

This is where leadership sets the tone. When senior management embraces transparency, teams are more likely to share shortcomings early, enabling faster course corrections.

Flexibility Over Rigidity

One of the most practical lessons Craig shares is about flexibility. He recalls the outdated philosophy that budgets should never be changed. In reality, rigid plans are doomed to fail in a dynamic environment. This is one of the main pillars Craig hihglights for effective mitigation: building contingency buffers, conducting scenario planning, and accepting that continuous re-planning is not a weakness but a necessity.

“A plan is not a straight jacket,” Craig explains. “You’ve got to recognize when you can change the plan to improve the outcome.”

Building a Culture of Collaboration

At the heart of this discussion is a simple idea: organizations mitigate execution risk by working together. From frequent conversations between departments to a shared willingness to communicate failures, not just victories, culture determines whether risk mitigation strategies succeed.

Craig concludes, “We’re all in this together… We want to help the weakest link work.”

Key Takeaways and Lessons Learned:

1. Identify and Document Risks: Catalog all potential sources of execution risk, from unclear roles to external disruptions.
2. ‍Monitor Continuously: Establish frequent check-ins and feedback loops to catch issues early.
3. ‍Leverage Corporate Memory: Record past successes and failures to inform future decisions.
4. ‍Embrace Flexibility: Adjust plans and budgets as needed, rather than treating them as fixed.
5. Clarify Ownership and Accountability: Ensure responsibilities are clearly assigned but create space for honest discussion of challenges.
6. ‍Foster a Supportive Culture: Encourage transparency and problem-solving across teams without fear of blame.

Stay Tuned For Part Three: Designing a Playbook

In Part 3 of this series, Craig will return to share his insights on Plansmith’s strategy on solving execution risk through a well designed playbook. Learn how a playbook can turn good intentions into consistent execution for your organization!

About Plansmith

‍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