Resilience:: foundation for a sustainable model
Saturday, 6 April, 2013 10 Comments
Organisational restructuring, talent shortages, and greater technology risks are some of the key transformation-driven risks for the rest of the year ahead, according to PricewaterhouseCoopers‘ latest Risk in Review report.
According to PwC ‘change’ is now happening among the more enlightened…but who are they, where are they and how the hell did the break-out from the thinking that has been a major contributory factor in the run-up to ‘financial meltdown’!
Businesses can use horizon scanning and early-warning systems to spot trends, and employ stress testing to identify key vulnerabilities. More flexible risk appetite statements, corporate-wide contingency planning and a risk-aware corporate culture that challenges conventional wisdom are all powerful tools that can help organizations better manage emerging risks.
Hard not to agree with such a ‘carefully crafted’ statement but forgive my curiosity: USING “HORIZON SCANNING”, CONVENTIONAL PARAMETERS AND TECHNIQUES HOW CAN AN ORGANISATION RECOGNISE AN EMERGING TREND OR PATTERN THAT IT HASN’T SEEN BEFORE…something that is without physical form or description that might aid identification!???
If you have no clues how could YOU, reliably, identify someone or something that you have never seen?
Even if the Global Consultancies, to whom Global and major Corporates tend to defer for ‘guidance’ on such matters, possessed the tools and quantitative justification that Ontonix can provide – they DO NOT – how many organisations can afford a firm like PwC &/or an in-house resource to enable them to anticipate and adapt?
Here is what IBM had to say in their Global Resilience report from 2011.
The economic downturn beginning in 2008 triggered new interest in risk management, driving adoption of truly holistic approaches where managing risk is inherent to every decision. Today, leading organizations are pushing these concepts further to develop enterprise-wide business resilience strategies. They strive to make the ability to respond rapidly to all kinds of unexpected events—opportunities as well as threats— part of the corporate culture. This means building a business resilience strategy that engages everyone in the organization.
The industry perceives TRANSPARENCY as a threat – hardly reassuring for customers – and, as a result, opportunities to seize competitive advantage and to capitalise upon the benefits of Social Business are lost to many established players. A weakness new entrants will readily exploit.
I have tried to save reading time for those who understand the need for a sustainable model to have a ‘sound’ foundation, by preparing this graphic [Risk v Resilience] on the right.
If that has helped to fire the imagination, more than another report full of business-speak I will be happy!
Now to test the appetite for change and to identify those with imagination and a genuine interest in doing what they do, just better that is absolutely necessary for meaningful innovation to happen.
The insurance industry is failing itself by ignoring the deep flaws in our rating and pricing models that cost our stakeholders dearly – although they may serve many consultants very well. It is time to stop providing options and start to offer choice…