Reliable and Secure Governance

Distortions and deceptions in strategic decisions

Source McKinsey Quarterly, by Dan P. Lovallo and Olivier Sibony. Companies are vulnerable to misconceptions, biases, and plain old lies. But not hopelessly vulnerable. The chief executive of a large multinational was trying to decide whether to undertake an enormous merger—one that would not only change the direction of his company but also transform its whole industry. He had gathered his top team for a final discussion… Errors in strategic decision making can arise from the cognitive biases we all have […]

IoT unlocks the door to hackers

Source: Strategic Risk. Businesses need to wise up to security flaws as they embrace the Internet of Things. This is a buzz phrase we hear used regularly but it is one which is prone to misconception and misunderstanding. Connecting devices, such as a kettle or light bulbs, over the internet and allowing them to communicate with each other and ourselves is the essence of the IoT. Smart fridges will order your shopping when supplies run low. A smart heating system […]

Coral reef – our ocean delivery room – under great stress

Source: Arc Centre of Excellence Coral Reef Studies For the second time in just 12 months, scientists have recorded severe coral bleaching across huge tracts of the Great Barrier Reef after completing aerial surveys along its entire length. In 2016, bleaching was most severe in the northern third of the Reef, while one year on, the middle third has experienced the most intense coral bleaching. “The combined impact of this back-to-back bleaching stretches for 1,500 km (900 miles), leaving only […]

Revision ISO 31000-2009 scheduled

Source: ISO. ISO 31000:2009 on risk management is intended for people who create and protect value in an organization by managing risks, making decisions, setting and achieving objectives and improving performance. The standard’s revision process discovers the virtues of keeping risk management simple. The revision of ISO 31000:2009, Risk management – Principles and guidelines, has moved one step further to Draft International Standard (DIS) stage where the draft is now available for public comment. What does it mean? And what happened […]

US is not ‘us’ anymore

 By Jack Kruf. The decision of president Trump (another one per decree and not via political and democratic debate and decision lines) to undo existing policies, pledges and contracts related to the commonly Paris agreed and signed innovative climate change approach, must give other countries reason to reconsider the trustworthiness and credibility of the United States. To say it blunt. From this decision more public risks will emerge and continue to do so, according most of the leading NGO’s, universities and research institutes. […]

Didier Sornette: How we can predict the next financial crisis

The 2007-2008 financial crisis, you might think, was an unpredictable one-time crash. But Didier Sornette and his Financial Crisis Observatory have plotted a set of early warning signs for unstable, growing systems, tracking the moment when any bubble is about to pop. Didier Sornette (born June 25, 1957 in Paris) is Professor on the Chair of Entrepreneurial Risks at the Swiss Federal Institute of Technology Zurich (ETH Zurich). He is also a professor of the Swiss Finance Institute, and a professor associated with both […]

Nonfinancial risk today: getting risk and the business aligned

By Joseba Eceiza, Piotr Kaminski and Thomas Poppensieker, McKinsey&Company. Ask senior managers at any company if they have nonfinancial risk under control, and the answer is likely to be yes. But as managers of companies in automotive, banking, oil and gas, pharmaceuticals and many other sectors can attest, the reality is often very different. And as personal liability for corporate actions takes hold, board members—both executive and nonexecutive—are on the hook not just for their personal involvement in risk- and compliance-related […]

Resilient Cities

Resilient cities are cities that have the ability to absorb, recover and prepare for future shocks (economic, environmental, social & institutional). Resilient cities promote sustainable development, well-being and inclusive growth.  The OECD is investigating how cities can increase their resilience. There are 4 areas that drive resilience: economy, governance, society and environment. The report on the OECD Resilient Cities project is structured into 4 sections: A framework for resilient cities. It provides a working definition of a resilient city, the drivers […]

Political Risk Map 2017

By Marsh. Global Geopolitical Risk Concerns for Businesses. Events in the West, including the UK’s Brexit vote and the US presidential election, have the potential to amplify geopolitical risks in 2017. Large populations have become dissatisfied with conventional politics, driven by factors such as surges in immigration, the ongoing terrorism threat, and the knock-on effect of global financial crises. The result has been increased protectionism and the rise of anti-establishment, nation-first parties in countries worldwide. In addition to these threats, […]

The Undoing Project

This is the extraordinary story – The Undoing Project: A Friendship that Changed the World, published by W.W. Norton & Company – of the two men whose ideas changed the world. Daniel Kahneman and Amos Tversky met in war-torn 1960s Israel. Both were gifted young psychology professors: Kahneman a rootless son of holocaust survivors who saw the world as a problem to be solved; Tversky a voluble, instinctual blur of energy. In this breathtaking new book, Michael Lewis tells the extraordinary […]

Vers l’e-citoyenneté et l’e-administration

Quels risques pour les collectivités? Compte-rendu d’atelier par PRIMO France. Introduction L’édition 2016 du Congrès du Syndicat National des Directeurs Généraux des Collectivités Territoriales a permis à PRIMO France de présenter et rappeler lors d’un atelier l’importance des cyber-risques et les enjeux majeurs qu’ils représentent dans le Service Public, en partenariat avec Marsh France. Vous trouverez en cliquant ici un compte-rendu détaillé de l’intervention de M. Gérard Combe, Président de l’association PRIMO France et de M. Thomas Graiff, Responsable Secteur Public chez Marsh France. […]

PRIMO Risk Management Award for the City of Utrecht

The city of Utrecht received the PRIMO Risk Management Award for their excellent organisation of Le Grand Départ de Tour de France 2015. On the 9th of December 2016, chairman of PRIMO Nederland, Michel Bezuijen, handed over the award to the mayor of the municipality of Utrecht, Jan van Zanen. The choice for Utrecht was based on the ‘excellent’ in the evaluation report by the Utrecht University, the way the project team built in risk management in their daily work and the direct […]

Terrorism Risk and Insurance

The leading Insurance Information Institute gives insight in the connection of terrorism risk and insurance. Of course we have -at all times – to protect our citizens and society from heavy losses and essential disruption. But in case of an emergency, what can the public relevance of insurance be? What actually can be insured and what not? “In addition to the risk of natural disasters, the insurance industry faces the threat of terrorist attacks. Losses stemming from the destruction of the World Trade Center and other […]

ISO 22316: Security and Resilience

The new ISO 22316 standard about organizational resilience will be published ultimo at the beginning of 2017. It has been developed by the ISO/TC 292 – Security and resilience – committee of the International Organization for Standardization in Geneva. Organizational resilience is the ability of an organization to respond and adapt to change. Resilience enables organizations to anticipate and respond to threats and opportunities, arising from sudden or gradual changes in their internal and external context. Enhancing resilience should be a strategic organizational goal. It is […]

Political Risk

With the (unexpected) outcomes and results of elections and referenda it becomes more and more evident that politics – and with that the shift of power and influence – is one of the drivers of public risk. The unpredictable working of politics – and in fact of society itself – with the democratic system is therefore in discussion, and even the system of democracy itself. What is political risk? According to Wikipedia our collective definition is: Political risk is a type of risk faced […]

Malta Seminar: Climate Change and Disaster Risk Reduction

Trends and Economic Challenges in Malta as part of the ‘Climate Change Research Seminar Series’. Date: Tuesday 29th November 2016 Organisation: by the Climate Change Research Platform of the University of Malta* and PRIMO** Venue: IT Services Building, Room VC102, Malta University The Climate Change Platform (CCP) was set up, under the auspices of the Islands and Small States Institute, to facilitate collaborations between University of Malta entities and individuals interested in climate change issues, and to promote research and […]

Good Government and Coordination

By Jack Kruf. The painting in the Town Hall of the City (and from Republic) of Siena is called The Allegory of Good and Bad Government. It is a series of three fresco panels painted in the Sala Dei Nove by Ambrogio Lorenzetti in 1338/1339. The series consists of six different scenes: Allegory of Good Government, Allegory of Bad Government, Effects of Bad Government in the City, Effects of Bad Government in the Country, Effects of Good Government in the City and Effects of Good Government in the Country.  The only way to get […]

The Global Competitiveness Report

Source: World Economic Forum. We face a large challenge—how to build a more prosperous and inclusive world for all. As a flagship effort of the Forum’s System Initiative on Economic Growth and Social Inclusion, The Global Competitiveness Report serves as a tool for public-private collaboration on long-term competitiveness agendas contributing to this objective. From the perspective of the Global Risks Report this report highlights governance and management approaches which can be helpful in reaching values and objectives on one hand and […]

Strategic decisions: When can you trust your gut?

Source: McKinsey Quaterly. A classic article from 2010: “Nobel laureate Daniel Kahneman and psychologist Gary Klein debate the power and perils of intuition for senior executives. For two scholars representing opposing schools of thought, Daniel Kahneman and Gary Klein find a surprising amount of common ground. Kahneman, a psychologist, won the Nobel Prize in economics in 2002 for prospect theory, which helps explain the sometimes counterintuitive choices people make under uncertainty. Klein, a senior scientist at MacroCognition, has focused on the power […]

Misconduct and Systemic Risk

Source: WSJ City The global financial system is subject to emerging vulnerabilities from misconduct by traders and bankers as well as from developments in financial technology, Mark Carney wrote in a letter to leaders of the Group of 20. The Bank of England Governor — writing in his capacity as the chairman of the Financial Stability Board — said the FSB was pursuing a “major” work programme that would study both remuneration and the possibility of increasing individual accountability for bad behaviour. “The incidence of financial […]

Uncertainty

By Jack Kruf A week ago, the United Kingdom voted for Brexit. ‘We are out’. The buzzword last week was  ‘uncertainty’, coming from the mouths of thousands of politicians, citizens and business leaders. The last seven days it was by far the most mentioned issue, word, context with huge consequences for the market. ISO defines risk as ‘the effect of uncertainty on objective’. Well, here we are. Risks affecting society – public risks – are about social and economic performance, professional and political […]