Source: Harvard Business Review by Robert S. Kaplan and Anette Mikes Editors’ Note: Since this issue of HBR went to press, JP Morgan, whose risk management practices are highlighted in this article, revealed significant trading losses at one of its units. The authors provide their commentary on this turn of events in their contribution to HBR’s Insight Center on Managing Risky [...]
The word dystopia refers to a fictitious place in which everything has gone awry. It is the flip side of utopia, the word coined by Sir Thomas More in his fictional portrayal of a seemingly ideal society. Although such ideas have fascinated novelists ever since More’s musings in the 16th century, there is now reason [...]
Author: Michael Power, London School of Economics and Political Science Source: Accounting, Organizations and Society 34 (2009) 849–855, Elsevier This essay challenges core elements of enterprise risk management (ERM) and suggests that an impoverished conception of ‘risk appetite’ is part of the ‘intellectual failure’ at the heart of the financial crisis. Regulators, senior management and [...]
Looking closely into the exact correlation of factors is half the work of good public risk management. Bjørn Lomborg lines out how economic crisis and managing climate related targets are interrelated. So called advantages are not always how appear to be, more than that they slow down a development. Source: Politiken.dk By Bjørn Lomborg, head [...]
BP counts the political and financial cost of Deepwater Horizon A disaster as the oil leak in the Gulf of Mexico is not anymore the domain of a private company, an accident, but has been centered into the heart of the public domain, public governance and of public risk management. This story in The Economist [...]
Source: NewStatesman Author: Lois Rogers “Swaths of regulation and an industry of “fear entrepreneurs” have fuelled a climate of timidity about the dangers of everyday life. This island was once populated by an upbeat, outgoing sort of race – the kind who rallied together in adversity, bailed out each other’s houses in times of flood, and [...]
Source: INSEAD Knowledge “The ability to assess risk and uncertainty is critical for investment banks and businesses. While some may advocate the use of complex models, INSEAD Dean of Faculty and Professor of Decision Sciences, Anil Gaba, believes that if you’re looking to forecast risk, you’d do well to keep it simple. He’s on a [...]
The Black Swan in the Gulf of Mexico will probably lead us to a turnaround in thinking about public risk, players and stakeholders, the blame, our precious environment and more than that about the precautionary principle, it’s risk management and public governance. It could lead us in a new, more sustainable direction. Last week Thomas [...]
Source: ICMA (International City/County Management Association) by Ron Blanquie “It’s no wonder that risk management’s public role is often underused and misunderstood. Government entities have incorrectly concluded that risk management’s overall costs can only be tethered but not controlled or reduced. Public entities in California today face an unprecedented challenge as they try to maintain [...]
Global Risk Management Survey 2013
Aon’s 2013 Global Risk Management Survey report is part of this process, capturing the latest risk trends and priorities facing companies around the world. The report unveiled the top 10 risks now and three years in the future. Conducted in Q4 2012, the web-based survey gathered input from 1,415 respondents — a 47 percent increase [...]
By Daniel Cressey for Nature “Across the globe, hives of honeybees are dying off in a phenomenon known as colony collapse disorder. Among the proposed culprits are pesticides called neonicotinoids, which are supposed to be less harmful to beneficial insects and mammals than the previous generation of chemicals. Debate over neonicotinoids has become fierce. Conservation groups and [...]
The economic crisis in Spain has led to an increased awareness among senior executives of how risk must be managed globally. Read more > Leer más > (en espagñol) Source: Strategic Risk
A framework in development By Ed Mallens and Jack P. Kruf The International Organization for Standardization (ISO) has worked on the ISO 31000 as referential framework for risk management in organizations. The setting has been outlined by ISO very clearly: “Risks affecting organizations can have consequences in terms of economic performance and professional reputation, as [...]
ISO 31000 and the Icelandic volcano crisis
By Kevin Knight The air traffic crisis provoked by the Icelandic volcano eruption, with its accompanying economic and societal effects, is analyzed through the lens of the ISO 31000 risk management standard by the leader of the group of ISO experts who developed it. The cloud of ash from the Icelandic volcano which has wreaked [...]
By PricewaterhouseCoopers Government and the global CEO: A new contract between business and the state 72% of government and public sector CEOs are somewhat or extremely concerned that fiscal deficits have risen. Each year, PwC’s Annual Global CEO survey gives business leaders, governments and the world’s business community a unique insight into the vision and decisions [...]
Reconsidering the Public-Private Risk Sector Management Divide
By Peter C. Young PhD. Five years ago I wrote a short article entitled, “Public and Private Sector Risk Management: Is There a Difference?” In that article I stated that while there is strength to the argument that ‘management is management’ and that leadership in any type of organization calls on common knowledge, skills and [...]
