Financial institutions state that the “non-financial risk” of their business customers is often related to compliance failure, misconduct, technology or operational challenges.
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