These financial institutions describe non-financial risks as only having a downside. At the same time, ESG investor groups are seeking businesses that use harmonized international standards to improve the environmental, social and governance situations at all facilities and their supply chains. Continue reading
I was speaking with a friend who is the Chief Operating Officer of a multi-national chemical processing company a few weeks ago. We were speaking about the various challenges that he is facing, which are not unlike the challenges faced by many companies. His most important goal was to maximize profits whilst minimizing inventory – nothing new here. Continue reading
Imagine that your plan has been implemented as it was designed. You and your organization carried out the plan following every detail that was contained in the planning documents. Your plan has failed. That is all you know. Your plan failed. Now your challenge and that of your planning team is to explain why they think that the plan failed. You must determine how much contrary evidence (information) was explained away based on the theory that the plan you developed will succeed if you implement the steps required to respond to a disruption of your business operations. Continue reading
The troubled project is on the road to recovery; it’s been recognised, escalated, planned and the execution team had been briefed and appointed. The team has started to address the issues and expect (hope) to recover the project as per plan.
But the plan was based on a diagnosis rather than a full autopsy. It’s only during recovery that any lurking complications manifest themselves and relapses occur; so be prepared for the worst. Continue reading
One of the interesting things I found, while doing research for the book, “Risk Based Thinking For Government”, is that Risk-Based Thinking (RBT) has permeated so many activities in government. RBT is a two-step process. The first step is to recognize that risks exist and to assess and prioritize them. The second step is utilizing the prioritized information to make decisions. Continue reading
At the same time, opportunities have arisen for employees who specialize in programming, engineering, and maintenance of machines in all areas of commerce and industry.
So here’s the crucial question: Will automation kill or create jobs? Continue reading
“The more you know, the more you know you don’t know.”
― attributed to Aristotle
Knowledge is an opening door to understanding risk; the risk of knowledge is knowing how much you do not know. Unfortunately we have a very limited understanding of where risk is or where risk is going to materialize. Here is a small excerpt from “I, Pencil” by Leonard E. Read. The reason for this example is that we all use or have used pencils in our lifetimes. The pencil is a simple implement, right? Continue reading
The Poisson distribution is a discrete distribution. This short article focuses on 4 formulas of the Poisson Distribution. It is also known as the rare event distribution. It has application in a homogeneous Poisson princess and with renewal theory. Continue reading
When people think of best practice in government, two things come to mind, benchmarking and national award winners. While both represent best practice, there is another approach which is growing in use and importance. This is the Good Governance Framework. The Good Governance Framework is the concept of identifying and listing the best practices in government. Continue reading
Although in ISO 31000 monitoring risk is another of its key tenets, I again see little monitoring in most risk management systems. Periodic review, dashboards, heat maps, and KRI reports are all Review (a different ISO 31000 tenet) not monitoring. IoT technology can deliver real-time monitoring of risk for more than just physical environmental metrics. Continue reading
How can we deliver projects in a timely, workmanlike and effective manner; there are many guides. This is an A to Z process linked to delivery, required decisions, and the establishment of an ethical project environment in which people may work. People may then realise their potential and the potential for their project to be delivered successfully. Continue reading
After the Australian’s risk management standard (AS/NZS 4360:2004) walked on ISO’s world stage in 2009, management system users from other countries have shrugged their shoulders over the need to determine the context BEFORE getting into the familiar plan-do-check-act (PDCA) cycle. However, what lies between the organization and meeting its objectives is uncertainty. Continue reading