Still subjective, still correlation but getting closer… :: Accenture identify characteristics of "The Risk Masters"


So, if reports from, the likes of AIRMIC “Roads to Ruin”, World Economic Forum/Zurich, FSA (on RBS), PwC, IBM, UK Government, Zurich and Towers Watson (to name a few recent contributors) have failed to penetrate engrained – but flawed – belief systems, it may be a forlorn hope that Accenture can succeed with this report…but, we live in hope! Hence my resolve to share this kind of useful information as widely as possible.

WEALTH WARNING: all risk management is not made equal and it should not be solely about risk…but reward!

Click to EnlargeBlack Swan resilience

More reports into the subjects of risk management, complexity and compliance can also be found here. Of the recognised Consultancy firms it certainly appears that AT Kearney have the best understanding of the subject of complexity but, unlike Ontonix, NONE, to date, have presented a, measurable, definition or means by which an organisation can begin to explore the issue themselves.

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URGENT: Another call for change – Towers Watson [Insurance Insight]


I recently complimented Towers Watson on another report “Extreme Risks…” and mentioned that I was reviewing this new report. I’m still not finished that (I really want to do it justice) and, although I recognise that there aren’t too many people hanging on for my comments, wanted to draw attention to it in the interim.

Following is a brief extract and link to the report.Thinking Ahead Group: function

Their “Thinking Ahead Group“, led by Tim Hodgson, appear intent upon flagging issues that others, from the insurance industry and risk professions, patently, prefer to shy away from…

WHATEVER YOU DO PLEASE DON’T BURY YOUR HEAD IN THE SAND TOO!

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Tempus fugit:: Extreme Risks update [report from Towers Watson]


Towers Watson are doing some sterling work at the minute whilst others appear content to believe that the future will closely resemble the past…strange, when you consider how much the world has changed in the last 20 years, let alone the last century! As the Founder and CTO of Ontonix, Dr Jacek Marczyk, put it:

“Running a company based on just the financials is like driving a car by only looking at the rear view mirror!”

This statement can be readily adapted to apply to classical economics, credit and risk rating (& modelling) that have been shown to be “deeply flawed”. Compounded by an unchanged culture and utilisation of risk management tools and techniques (from the Industrial era) that have failed, so spectacularly, in the Digital Age.

We “know”: about the differences between risk and uncertainty: that interconnected entities present a very different probability distribution; about “Black Swans” and low probability/high impact events; the threat of “systemic risk” is significant and straddles domains as readily as it transcends “scales” (micro to macro), business sectors and national borders; that, in the face of uncertainty, we NEED to (re)build RESILIENCE…

Regrettably, the common approach (particularly in Financial Services) seems to be to overlook the inconvenient truth

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