Business Insurance:: ISO 31000 should we believe the hype?


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Apparently,

“…risk managers should use standards such as ISO 31000, “because standards, no matter what kind or which ones, support key tools and processes.”“Standards allow you to proactively address risks with some discipline,” he said. “Standards also relate well to the whole idea of focusing on outcomes.”

http://www.businessinsurance.com/article/20130602/NEWS06/306029979?template=smartphoneart

Surely the focus should be upon being proactive and ‘managing’ emergent risks, NOT outcomes!?

Where, I suspect, NASA have a distinct (informational) advantage is that the multi-scalar interactions among components, processes, networks of sub-systems and systems are each rigorously tested at every point in assembly and operation…

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Insurance Industry:: Innovation, transformation or failure


If you have visited my blog before you will already know that I have spent some considerable time researching and commenting upon a wide of topics that, although many within insurance fail to see the connection, are related directly related to the insurance industry.

In truth, my work was initially prompted by concerns (a deep dissatisfaction may be more appropriate!) about how the insurance (particularly broking) operated: structure; culture; regulation; remuneration levels; use of IT; cover; pricing of RISK. It was only as I delved deeper into the subject matter, a form of ‘root cause analysis’ [RCA] – causality being particularly pertinent to insurance! – that I came to fully appreciate HOW DANGEROUSLY LIMITED the understanding and application of a probability-based assessment of risk truly was. Especially when the business environment has, fundamentally and irrevocably, changed.

If a future event will take place, it will do so irrespective of the probability that we may have attached to it. If an extremely  unlikely event will happen, it’s probability of occurrence is already 100%

Having been introduced to Complexity (by Dr Jacek Marczyk, Founder of Ontonix srl) and it’s relationship to risk and uncertainty my RCA led me to investigate from a (more rigorous) scientific and mathematical perspective. Eventually into the realm of the behaviour of Complex Systems and, inevitably, to Systems Thinking. Gradually, the understanding, that comes from viewing life and work through the Systems lens, revealed that much of what is wrong with Financial Services stems from unnatural interventions.

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Customer Manifesto:: “how it be bruv!”


The tables have turned but the fact that so little has changed is OUR OWN FAULT.

Why would the Corporate world, that has so effectively exploited its power for so long, willingly give up that position?

If the new business models of the Digital Age are the one’s responding to customer needs and demands for demonstrable value – through greater transparency – we should not allow inertia or fear of change to hold us back from the sustainable benefits of loyalty built upon the ability to TRUST.

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The “problems” aren’t new but the tools that enable group communication and collaboration are. I was born in a decade when most televisions were black & white and, within the last 25 years a computer, phone, camera, television, games console were separate items and certainly didn’t fit on a single hand-held device!!!  

SO WHY are we wasting what we have engaging in “LOL or OMG at silly videos” and swapping meaningless nonsense about celebrity culture, when there is so much wrong with a world that we take for granted…

rise_like_lions_445 There is a massive job that requires many hands and minds working together, with one purpose, for the common good. Toward a more equitable, sustainable, future for communities in crisis and the generations that follow.

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Why not “constructive transparency”?


I recently came across a very interesting article that brought to my attention a phrase I hadn’t come across before: constructive ambiguity.

Isn’t that an oxymoron???

The article is here and it touches upon a topic and writers I have written about before in relation to business as war. If you like you economics with a social conscience and a philosophical perspective Ashwin’s your man.

“The interaction between the market participants, and for that matter between the market participants and the regulators, is not a game, but a war.”

Rick Bookstaber

However, in this article ‘constructive ambiguity’ was being used in terms of preventing moral hazard within a regulatory regime.

That’s when it struck me! Why not constructive transparency?

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Digital Business in 2013:: it’s how things ARE on the inside that matters


Trust me, because I speak from personal experience, it is a hard (frustrating, lonely and costly) path you tread when advocating fundamental change for an industry such as insurance!

Social Business is the real deal, NOT a flash-in-the-pan.

Of course there any number of firms ready and willing to tell the insurance industry about the merits of their particular social media (Social Business) solutions…there is even a forthcoming event, “Digital Insurance Strategies 2013”…BUT, very few have sufficient knowledge about the number and nature of the industry’s root and branch problems. I fear there isn’t much scope for help from within an industry: in denial of the failings of the prevailing model and culture; structured for selling – push not pull; hampered by a prediction addiction; too closely-coupled to its supply chain to adapt to a changed environment; devoid of truly innovative [creative destruction] ideas – a long and inglorious record of self-serving destructive creation is no substitute and has the opposite of the desired effect, which leads to; the inability to afford the requisite level of transparency required to (re)build customer trust and loyalty.

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For a digital strategy to be effective and sustainable in the Digital Age requires i2o [inside to out] change…otherwise it could be a, short-lived and very expensive exercise in turd-polishing!!! Read more of this post