2011 IBM Global Business Resilience and Risk Study:: cling to the wreckage of failure…or invest for the future?
Tuesday, 28 February, 2012 Leave a comment
There isn’t much point in me, again, reiterating WHY “Corporate Resilience” [Nassim Taleb’s “antifragility”] is so important in the Digital Age! So, whilst I am slightly concerned that this report seems to infer this is more of an issue for larger firms, it is probably best I let any interested readers make their own minds up on the matter.
Traditionally, risk management tended to focus on a combination of risk transfer—achieved through insurance or other financial products—and business continuity planning to keep the organization running during a crisis. Beginning in the 1980s some companies started to develop enterprise risk management (ERM) programs building on the “circle of risk” first conceptualized in 1974 by Gustav Hamilton, risk manager of Sweden’s Statsföretag AB. The idea was to link different risk management activities such as identification, assessment, control, financing, monitoring and communication into a continuous process. In many cases, however, each element continued to operate within organizational silos.
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.
I have “gone on” (some may say ad nauseam) about the “shortcomings” of conventional risk analysis, management and rating techniques and tools but the truth of the matter is, that all I am intent upon doing is to raise the profile of a rigorously-tested [quantitative] means of, comprehensively, assessing both COMPLEXITY and RESILIENCE within business systems – from Ontonix. AND ensuring that, when information on related subjects appear, from “informed sources”, they do not go by unnoticed.
Of course my input should not be viewed as some form of philanthropic public service. Not quite! Because it is rare that such advanced technology – for identifying issues that are critical to business survival in our complex, inter-connected, world – are so readily accessible and don’t come at a cost likely to compound any underlying problems! Check out our on-line solution…
If you want to read more on the subjects the following White Paper and Technical note should satisfy the curiosity of most. Of course, if they don’t PLEASE, just get in touch.