In the news

Venice Flooding Brings City to ‘Its Knees’

Elisabetta Povoledo The mayor called for a state of emergency after the Italian city was submerged under “acqua alta,” an exceptionally high tide — the worst in 50 years. Outdoor restaurant tables and chairs could be seen bobbing in the waters, and tourists were forced to clamber through the windows of high-end hotels as the water rose to about six feet […]

Auditing ahead of the wave requires foresight

Jaap van Oerle. Every time a corporate scandal makes headlines, the question “Where were the auditors” comes up. Or should come up. After all, internal and external auditors claim that they “help Boards to protect value”. While the external auditors usually face substantial criticism after a scandal, more often than not, no-one looks at the internal auditors. Read more

How to hire a great Chief Risk Officer

Victoria Robinson An IRM guide to the recruitment of great Chief Risk Officers and other senior risk professionals. The IRM has released new guidance on hiring for the most senior risk positions. It also remarks on a shortage of candidates for senior level positions and calls on organisations to ensure that their professional development schemes and succession plans nurture sufficient talent […]

Risk management debate: Is ERM a total fraud?

Join Hans Laessoe, founder of AKTUS and former CRO of LEGO, and Alex Sidorenko, for another thought-provoking risk management debate. On the 2d of August we will talk about ERM and what it means to the risk management profession. Join us for this very entertaining debate. Alex will argue how most common ERM concepts have failed, increased bureaucracy, failed to […]

Fiscal resilience: Tools to manage state budgets in an age of uncertainty

Jonathan Davis, Navjot Singh and Todd Wintner When the next economic downturn comes, states will need to be more deliberate about how they manage expenditures and revenues than ever before. An emerging theme across US states —and many regional governments in developed economies— is persistent fiscal uncertainty. Demographic change, spiraling healthcare inflation, and underfunded liabilities have placed states under unyielding fiscal pressures.

Rising Seas Will Erase More Cities by 2050

Denise Lu and Christopher Flavelle.  Rising seas could affect three times more people by 2050 than previously thought, according to new research, threatening to all but erase some of the world’s great coastal cities. The authors of a paper published Tuesday developed a more accurate way of calculating land elevation based on satellite readings, a standard way of estimating the […]

Climate crisis: 11,000 scientists warn of ‘untold suffering’

Damian Carrington. Statement sets out ‘vital signs’ as indicators of magnitude of the climate emergency. The world’s people face “untold suffering due to the climate crisis” unless there are major transformations to global society, according to a stark warning from more than 11,000 scientists. “We declare clearly and unequivocally that planet Earth is facing a climate emergency,” it states. “To secure […]

Confronting the risks of artificial intelligence

By Benjamin Cheatham, Kia Javanmardian, and Hamid Samandari | McKinsey Quarterly With great power comes great responsibility. Organizations can mitigate the risks of applying artificial intelligence and advanced analytics by embracing three principles. Artificial intelligence (AI) is proving to be a double-edged sword. While this can be said of most new technologies, both sides of the AI blade are far sharper, […]

What Successful Public-Private Partnerships Do

Elyse Maltin | Harvard Business Review Despite spending $2.5 trillion a year on roads, railways, ports, water, and other public infrastructure projects, countries around the world are still falling far short of what they need to invest, according to one estimate. Thus, it’s no surprise that there is renewed interest in public-private partnership (P3) projects, where businesses supplement public investment […]

John Kerry: Forget Trump. We All Must Act on Climate Change.

John Kerry.  This week is the third anniversary of the Paris climate agreement. The Trump administration marked it by working with Russia and Gulf oil nations to sideline science and undermine the accord at climate talks underway in Katowice, Poland…Future generations will measure us by whether we acted on facts, not just debated or denied them.  Read more

Daniel Kahneman: Your Intuition Is Wrong, Unless These 3 Conditions Are Met

Emily Zulz | Thinkadvisor At the World Business Forum, Kahneman explained when people can trust their intuitive judgment and when they shouldn’t. Can intuition play a role in investing? According to Daniel Kahneman, a Nobel Memorial Prize-winning behavioral economist, no. During a speech given at the World Business Forum in New York City, Kahneman explained when people can trust their intuitive […]

Why whistleblowers are crucial to risk compliance

Source: Inside Financial & Risk. The role of whistleblowers in UK companies is essential in order to establish a culture of risk compliance. What can firms do to ingrain a whistleblower culture within their firms and to protect the whistleblowers themselves? A recent case highlighted the importance of whistleblowers in UK companies and their role in reporting compliance and risk […]

A decade after the global financial crisis: What has (and hasn’t) changed?

Source: McKinsey&Company The world economy has recently returned to robust growth. But some familiar risks are creeping back, and new ones have emerged. How secure is the global financial system, a decade after the crisis? Great strides have been made since 2008 to prevent a recurrence of the financial crisis and recession that followed. Yet there is more debt than […]

The Arctic is sending us a powerful message about climate change. It’s time for us to listen.

Source:  World Economic Forum. Arctic scientists aren’t usually afraid of a little cold. Windy conditions don’t usually get us howling. The beasts we pay attention to are usually polar bears. But last week’s “Beast from the East” triggered a few anxious conversations. Social media memes aside, our problem isn’t this one extreme weather event per se. Our key fear is […]

The future of risk management in the digital era

By McKinsey&Company. We collaborated with the Institute of International Finance (IIF) and more than 50 institutions around the world, including banks, regulators, and fintechs, to explore critical questions on the future of risk management. This report aims to answer these questions and shares insights to help organizations navigate a digital transformation of the risk function—now and in the long term. […]

EU Court: Poland illegal in Białowieża Forest

Poland will continue logging in the ancient forest of Białowieża.  This statement came from the country’s environment minister Jan Szyszko. The EU court has ordered a halt to the practice of this country earlier this week. Has Poland started the process of destroying the last European pristine forest? And has it with that compromised the brand of Poland. The loss […]

Getting Chief Executives to Take Cyber Risks Seriously

Source: Council of Foreign Relations. CEOs and their boards of directors should pay more attention to the cybersecurity risks that could devastate their business…. To convince board members and CEOs to act, they must first be convinced of the acute consequences of failing to implement proper cybersecurity measures. “Properly assessing these risks and allocating resources require informed decision-making by a company’s […]

Europe’s cities and regions focus on the Paris Agreement

European Committee of the Regions deeply regrets the decision of President Trump to withdraw the United States from the Paris Agreement. Responding this announcement Markku Markkula, President of the European Committee of the Regions, has underscored the unwavering commitment of cities and regions across the European Union to curb climate change and respond to this global threat, which affects the […]

Stress testing for nonfinancial companies

Source: McKinsey&Company. Assessing a company’s vulnerability to risk makes otherwise theoretical discussions of strategy more real. In the decade since the global financial crisis, financial companies have honed their ability to measure risk in a way that nonfinancial companies have not. Granted, nonfinancial executives hadn’t faced the same existential crisis. And they’ve seldom come under the same kinds of investor […]

Risk Management in the very heart of 4IR

Source: G20 Insights. PricewaterhouseCoopers outlined ideas to enable a sustainable Fourth Industrial Revolution. How G20 countries can create the conditions for emerging technologies to benefit people and the planet. “The Fourth Industrial Revolution (4IR) offers huge potential to transform and realign our economies and societies. There is an increasing realisation that the 4IR could also exacerbate problems for people and the […]

Incêndio de Pedrógão Grande

Quercus considers clearance of responsibilities necessary and recalls management mistakes of successive governments in the forest area. Quercus is a Portuguese non-governmental organization and a independent, non-partisan association of national scope, non-profit and made up of citizens who have gathered around the same interest for the Conservation of Nature and Natural Resources and in Defense of the Environment in general, with […]

You can teach yourself to be risk-taker

By Vivian Giang, BBC.  Business leaders say taking risks is an essential part of getting ahead in today’s world. If that’s not your style, how can you become more comfortable with leaping into the unknown? “Our ability to take a chance and be comfortable with an unknown outcome is affected by our own psychological make-up, the physiological functions in our bodies, […]