In the risk-neutral world, all business and government continuity planning would be risk-balanced. However, in reality, risks, threats, hazards and their consequences change depending on an organizations exposure, sensitivities to impact and other factors. For instance, a natural disaster, can occur without much warning and can have direct and indirect impact on an organization. Complicating the Business Continuity Planners life is a simple fact, events have unforeseen consequences that can rarely be planned for. Continue reading
Category Archives: Strategy@Risk – Geary Sikich
#191 – HOW TO TURN A STRATEGIC PLAN INTO RESULTS – GREG CARROLL
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Recently I read a new 6-star hotel is opening in Australia in 2018. 6-Stars, really? I remember when 5-star rating was synonymous with 1st Class, as opposed to 2nd Class. Now we have 0th Class. I stayed in a 6-star hotel once and couldn’t see the difference to a true 5-star hotel, in fact it wasn’t as good as the 5-star Royal Crescent Hotel in Bath UK, which I would have to say is the best hotel experience I have enjoyed (that includes The Plaza, Savoy & Peninsula). Truly sublime. So if ISO 31000 is the 5-star of the GRC field what would be 6-stars? I would put that as being Strategic Management, it’s what turns the Plan into reality. Continue reading
#190 – WALKING ON SHIFTING SANDS IN THE AGE OF UNCERTAINTY – GEARY SIKICH
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“To do something very dangerous takes a certain lack of imagination”
– Anonymous
Introduction
Governments and companies worldwide are emerging from the current financial crisis and subsequent recession. While governments are crafting new regulations, businesses around the world are walking in shifting sand as risk exposures are high and new regulations will create compliance challenges. According to a recent survey by Korn/Ferry International, corporate leaders are focusing more attention on risk management after what is considered by many to be excessive risk-taking during the boom times that factored into the global financial crisis. Continue reading
#189 – BLACK SWANS, SHAPESHIFTERS, AND FLEXIBILITY – GEARY SIKICH & JOHN M. STAGL
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It’s all about targeted flexibility, the art of being prepared, rather than preparing for specific events. Being able to respond rather than being able to forecast, facilitates the ability to respond to the consequences of an event.
Perspective
It seems that there many experts today who are jumping on the bandwagon and laying claim to some aspect of, or permutation of, the “Black Swan” concept. I recently read about someone claiming to be a “Master Black Swan Hunter.” Continue reading
#185 – WHAT IS COLLATERAL RISK? AND WHY SHOULD WE BE WORRIED ABOUT IT?- GEARY SIKICH
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The Law Dictionary defines Collateral Risk as:
The RISK of loss arising from errors in the nature, quantity, pricing, or characteristics of COLLATERAL securing a transaction with CREDIT RISK. Institutions that actively accept and deliver collateral and are unable to manage the process accurately are susceptible to loss. A subcategory of PROCESS RISK. Continue reading