Resilience:: foundation for a sustainable model


Resilience risk complexity uncertainty graphicOrganisational 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.

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“ERM is not enough”:: How to prepare for a Black Swan [Booz & Co]


Great to know that there are still major Consultancy firms ready and willing to wade-in to help firms understand the type of risks that could “kill” an enterprise but about which too little is widely known, less is understood and next to nothing is done to extend the current “risk horizon” or to build RESILIENCE into the Commercial/Corporate defences.

Of course the following perspective is certainly not the only one available…”Black Swans”, Systemic Risk, Complexity, Uncertainty are topics that I have covered in this blog on MANY occasions…but it is worth a read. It may answer some questions or prompt new one’s, either way, you will have given the matter further thought and, if it leads you to a more resilient enterprise, the benefits will be communicated to others…and you can thank me later!

These events can threaten a com­pany’s survival, and boards and senior leaders are responsible for protecting shareholders and other stakeholders. They must ask, What else can go wrong?

A Disrupter Analysis Stress Test

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The Curly Factor (via Prologue)


Great insight and humour from a man who knows what he is talking about…I just hope people are listening (although I do, sometimes despair!).

The Curly Factor We  talk about “risk intelligence”  and various gurus and philosophers have called it “the capacity to learn about risk from experience and a special kind of intelligence for thinking about risk and uncertainty.  At the core is always the ability to estimate probabilities accurately.  But what if you are just not very smart, maybe even dumb?  Is there hope?  Actually it pays to be ignorant when it comes to dealing with high impact risk.  That’s w … Read More

via Prologue

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

Insurance Brokers: Read the signs and act…or risk being left behind!


Extracts taken from the June 2009 edition

OK, so YOU know where you want the business to go and, hopefully, have a clear idea of HOW to get there but that is only the start of the process.

Even in large organisations, the latter is not necessarily true! Many brokers who have started down this path have realised very early on that quantifying how success will look is easy. Plotting a course can be relatively straightforward too. Identifying and developing the opportunities should not be difficult for experienced brokers. From my own experience, that is where the trouble starts… Read more of this post