Innovation:: managing complexity & reducing risk [Design News]


I was first aware of the author courtesy of this quote…that alarmingly few business ‘leaders’ appear to, either, believe or understand…

“In a complex system, learning how all the pieces—constant and variable—interact gives a depth of understanding that averts catastrophe. That is what we mean by human-centred design—understanding the interfaces among technology, people, communities, governments, and nature. This is what makes complexity manageable”.

If you are in the business of making money based upon the ability of another party to avoid financial loss, then your own ability to identify the properties that distinguish ‘good risk from bad’ is, SURELY, fundamental!? So the message that there is a means to gain “…understanding that averts catastrophe“, through “understanding the interfaces among technology, people, communities, governments, and nature” must surely be greeted with wide-eyed enthusiasm. Read more of this post

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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