Complexity underpins the top business continuity issues for 2013

The failings &/or shortcomings of conventional risk management are known but still it’s acolytes continue to peddle their wares and ignore the inconvenient truth…

Complexity is a recognised source of risk that their tools and techniques CANNOT identify or address…but, if the understanding of the issues is growing amongst Risk Managers, surely, it can only be a matter of time before the ‘power’ of Ontonix tools becomes fully appreciated.

“…the risks we all face as we go into 2013 are much more complex, and thus much more difficult to counter,” says Michael Davies, CEO of ContinuitySA, Africa’s leading provider of business continuity services.

In what has become an annual exercise, Davies and members of his executive team met late in 2012 to review their predictions for the year and ponder what the coming year might hold for risk managers.

“What became very clear is it has become almost impossible to consider individual risks without taking the overall risk into consideration,” Davies observes. “Globalisation and the profound connectedness between individuals, companies and countries promoted by technology means that risk, too, must be seen broadly.”

Bearing this observation in mind, Davies and the ContinuitySA team have identified the following set of six interrelated risks for 2013….

Complexity underpins the top business continuity issues for 2013 | ITWeb.

2011 IBM Global Business Resilience and Risk Study:: cling to the wreckage of failure…or invest for the future?

imageThere 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.

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Harvard Business Review: Complex Risk Management

I wouldn’t want anyone to get too excited and think that I have added Italian to my extensive repertoire of (one) language! I have to thank one of my colleagues at Ontonix for the translation of this article from Harvard Business Review, Italy. The author – whose Linkedin profile can be accessed from the link in his name (below) – is not a member of the Ontonix team but is extremely well qualified to put forward an informed opinion.

Supply Chain and Systemic risk

The article is not, exclusively, about Japan or Supply Chains. Nor is it about just about Ontonix but it IS about gaining some understanding of complexity: what it is; why it cannot be detected by conventional risk management; how it can impact and why ignorance can’t really be an excuse.

Supply chain complexityI have written numerous blogs and several articles on the frailty of, in particular, Global Supply Chains. With very good reason. Thankfully, not every event, like that which struck Japan last month, causes such vast devastation and loss of life. But many natural disasters and, increasingly, the man-made variety pose a huge threat to businesses that are already struggling to deal with a turbulent global economy and have “lean” business models that assume the greatest threat(s) to their success come from risks that they have encountered before so can (in theory) prepare for…

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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



Enormous cost of IT failure: $500 bn per month – complexity often cited as culprit!

In a recent whitepaper titled “IT complexity: Danger or Opportunity,” Roger Sessions calculates that each year the U.S. loses $1.3 trillion to IT failures. Worldwide it equates to $500 billion per month or $6.18 trillion. Sessions says the culprit is almost certainly IT complexity.

Whether the figures are accurate or not the message is clear: Prevention is key because the price of failure is huge

Problem: there aren’t many companies ready, willing or able to invest the kind of money required to replace existing systems.

Answer: monitoring and maintenance…but who (in their right mind) doesn’t already do this?

It does rather appear that costs of the magnitude that, prior to the virtual collapse of global financial markets, were (almost) exclusively the domain of playground fantasy are being spent of “shutting the door once the horse has bolted.”

Solution: a reliable and proven means of mapping, monitoring and managing system complexity with inbuilt “crisis anticipation”…Ontonix

In the following example we refer to monitoring an IT system within a banking environment. Often, due to a mish mash of legacy and bespoke systems, amongst the most complex and, therefore, vulnerable. At the other end of the spectrum lie systems associated with Call Centres (link).

Experience: Major Polish telecommunications providers turn to Ontonix – Polkomtel acquires licenses of OntoSpace and OntoDyn.Plus

Existing clients

image Swisscom is Switzerland’s leading telecoms provider, with 5.7m mobile customers and around 1.8m broadband connections

Real-time Monitoring of IT Systems (Bank)clip_image002 IT systems in banks are extremely complex dynamical systems, composed of disparate hardware platforms, disk, routers, software applications, and are accessible by the bank’s customers via the internet. Clearly, the correct operation of a bank’s IT infrastructure is of vital importance. Real-time monitoring of the complexity (and fragility) of a large IT system may be used to issue early warnings to the system’s managers, helping intervene before the systems reaches a state of crisis.

The following graphic is not specific to IT or telecoms. systems but highlights some of the consistent and verifiable results of our unique research into system complexity. Our technology is in use in a wide range of sectors including Banking, Mining, Medical research, Healthcare and Air traffic control to Computer aided design and petrochemical manufacturing.

Principle of Incompatibility

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