Introduction
We are enamored by risk models, mathematic algorithms, equations and formulae. As a matter of fact, we have become so enamored by complex mathematical algorithms, formulas, models and derivatives that we have abdicated much of the analysis of risk, to these complex formulas and quantitative analysis methodologies touted by firms far and wide. Where has this gotten us? Are we better able to predict and measure risk exposures? Are we managing risk more effectively? Continue reading
Heightened Awareness or Reactive, Backwards Looking?
From financial crises to energy catastrophes to earthquakes and threats of terrorism, we hear a lot about events that challenge our ability to identify and manage risk. Unfortunately some of the things that emerge from many of these events are reactive regulatory rules and requirements.
What this means is that businesses and governments need to be even more vigilant in their prosecution of enterprise risk management initiatives. Private and Public Sector operations are complex and becoming more complex as more entrants to the global marketplace compete for fewer and fewer available resources at an ever quickening pace. Continue reading
If you want senior management to pay attention give them something that challenges their focus – and understand that their focus is not on how many computers you have or RTO, RPO stats. It is on business survivability – will we be in business tomorrow given the issues that we face today.
What is more important to your organization’s continuity of operations – how many computers you have or where your competition will be coming from in the next five years? Continue reading
Good intentions do not make for the creation of a robust/resilient organization. Business Continuity plans, Disaster Recovery plans, Emergency Response plans, etc., that are standalone documents generally reflect good intentions – whether to meet regulatory requirements or to address governance. I would have to say that this should be a wake-up call for executives in all industries. We live in a complex and interdependent world. Complex systems are full of interdependencies that are hard to detect. The result is nonlinearity in responses to events, especially random events/shocks. Continue reading
Introduction
It is mid-year 2014 as I write this article. We have recognized the need to better manage supply chain risks for the better part of a decade now. Yet, we still seem to be deluded into thinking that the modern supply chain is resilient to the point of invulnerability. Most organizations have a supply chain that is a mix of competencies, from manufacturing to professional advisory services. Continue reading