Updated: Enterprise Risk Management & Complexity analysis


Surely it makes sense to any “tuned in” business leader to embrace ERM!? I think this graphic (from RIMS) beautifully illustrates the various, generic, component parts. So, why then, have so many been so slow to adopt this approach?

Risk and Insurance Society Risk Maturity Model©, 2006, www.RIMS.org

imageIn truth I don’t know but this is my blog so I am entitled to take a crack at providing my take on the answer.

LOOK AT IT FROM THE PERSPECTIVE OF A BUSINESS OWNER/MANAGER!!!

How much time will this take?

What amount of resource will I need to commit?

How much will it cost…can WE afford it?

How can I quantify the benefit to the business?

Where the hell do we start?

All pretty reasonable questions especially when you consider that most responsible business leaders will already be complying with the terms from their insurers and the minimum legal requirements to enable them to trade.

Management time is already at a premium…isn’t that part of the problem(?)..this hardly looks like a solution. Most senior managers would be entitled to visualise working by candlelight, lost weekends, absentee father status and more issues surrounding “work/life balance”. Oh oh!!!

Where is the incentive for risk and business managers to “step up to the plate” and become RISK LEADERS? After all, the prevailing business culture is dedicated to rewarding those who satisfy the lust for a quick return…and that is very rarely the case with a well constructed strategy aimed at mitigating risk.

It looks all-encompassing and very impressive but it does beg the further question

“do I fit the model to the business or the business to the model?” Read more of this post

On-line complexity self-rating: Recorded OntoNet™ webinar & presentation


Complexity IS a pretty abstract concept to most people BUT that does not mean that it can be ignored. Nor does it mean that it is, therefore, hugely expensive to deal with.

Unfortunately it does mean that it can be very difficult to get the message across without confusing, boring or intimidating the listener!

In fairness we fully understand that there aren’t too many business people who readily accept that WE can tell THEM much more about the health of their business by analysing the type of financial data that they (or their Accountant) regularly use to measure its performance. But, in truth, that is the very least that we do.

Our focus is not upon WHAT the business has achieved in the last period and to use previous periods (or competitors) the yardstick.

We…and we are sure that MOST business people, given the option…want to know HOW the business has achieved its results. WHERE it is working well, HOW financially robust its structure is and areas that give “cause for concern”.

Enough from me! Please take the time to view the webinar and listen to my colleagues explain in more detail just what it is that we can do to help, even the smallest, companies.

This webinar was about …

As an executive you are always overloaded with information. If there were only 3 things you could keep on the top of your mind at any given point of time, what would they be?

In a marketplace of increasing complexity, how about knowing exactly how sustainable your business is today? We don’t mean “knowing” in a warm, fuzzy sense, but actual, hard numbers that tell you how robust your business is.

Secondly, how about also knowing which factors in your business need immediate attention to ensure/improve the sustainability of your business?

Finally, how about also knowing the complexity of your business, your industry and your competition?

Is YOUR business

Find out  ON-LINE! !cid_part2_01060409_08020107@ontonix


 

 

Ontonix Launches OntoBench™: Holistic Benchmarking System


Como, 15th October 2010. image

Ontonix launches OntoBench™, a holistic complexity-based system for the comparison of the performance of corporations, branches, processes or portfolios. “OntoBench™ goes beyond conventional benchmarking procedures whereby the principal business KPIs are compared. Our approach is to take into account also the structure of the interactions of these KPIs”, said Dr. J. Marczyk, the Founder and CTO of Ontonix. “Improving business processes by reducing their complexity, making them more profitable and resilient, involves structural changes and this is precisely why OntoBench™ focuses on the structure of a business not merely on its performance” he added. OntoBench™ provides not only a measure of the difference between the two businesses or processes being compared, it also delivers a quantitative breakdown of the said difference into components, thereby delivering clear and actionable information. The OntoBench™ Data Sheet may be consulted here

Ontonix, a privately held company, develops software and offers high added value services in the field of complexity management. OntoSpace™, the company’s flagship product, is the world’s first complexity quantification and management system. The unique approach to complexity and its quantification that is available in OntoSpace™ establishes radically innovative means of crisis-anticipation, superior BI-CPM, decision-making, holistic risk rating and risk management. Ontonix also offers a first-of-a-kind on-line on-demand service which enables our customers to purchase personalized Complexity & Risk Maps™ and perform near real-time complexity-based self-ratings,  allowing one to verify the state-of-health of corporations, organizations, asset portfolios, or any kind of business.

If you would like to learn more or view a demonstration please get in touch with me.

Choice Under Uncertainty


Dice_On_Financial_IndexMore good stuff all the way from Farnam Street. This is only an extract intended to highlight that we aren’t as smart  as we would like to think when it comes to weighing up probability…even when the facts are presented to us. Although I’m sure that 80% of the readers would dispute that!

The financial sector globally employs vast numbers of clever people to know about probability – risk – uncertainty AND to turn it to their advantage but even they haven’t faired so well.

With the pain that we have all suffered as a result of the collapse of our economic system I think most of us have learned our lessons BUT I CAN’T SPEAK FOR EVERYONE.          


Some of the general heuristics—rules of thumb—that people use in making judgments that produce biases towards classifying situations according to their representativeness, or toward judging frequencies according to the availability of examples in memory, or toward interpretations warped by the way in which a problem has been framed. These heuristics have important implications for individuals and society.

Framing and Loss Aversion

The way in which an uncertain possibility is presented may have a substantial effect on how people respond to it. When asked whether they would choose surgery in a hypothetical medical emergency, many more people said that they would when the chance of survival was given as 80 percent than when the chance of death was given as 20 percent.

Source: Decision Making and Problem Solving, Herbert A. Simon

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