Risk Management

Issues Paper on resilience solutions for pandemics

European Insurance and Occupational Pensions Auhority (EIOPA) The paper recognises that private insurance solutions alone will not be sufficient to protect society against the financial consequences of future pandemics. Solutions will require both public and private sector involvement, and build on the following four key elements: Proper risk assessment Risk prevention and adaptation measures Appropriate product design Risk transfer Insurance […]

The light of risk management has dimmed

Jack Kruf* The world of risk management is a special world. There are many methods and techniques, software programs, standards, surveys and especially experts. It is a true cloud that hangs above us, of concepts, of supposed uncertainties, unknowns, forces we do not seem to know, of black swans, sometimes also white swans, of dangers that seem to circle like […]

Deciding: Making even better decisions

Roger Estall and Grant Purdy have recently published a book on decision-making called Deciding. Written to help decision makers (we call them Deciders) to make ‘even better decisions’ it goes directly to the two big challenges for every Decider – ensuring that each decision will contribute to (rather than detract from) achieving the purpose of their organisation, and being sufficiently […]

JFIRM and PRIMO start collaboration

JFIRM and PRIMO start collaboration on the 1st of April 2020 in calling for and sharing of relevant publications related to risk management. PRIMO seeks more connection between scientific research and the practical insights and knowledge of leaders, CEO’s, manager, controllers and strategists related to the public domain of society. It promotes the connection and cooperation between organisations in the […]

Coronavirus outbreak highlights market complacency risk

Robert Armstrong Why was reaction to red flags slow — and can business become more vigilant? Monday morning, February 24, was the moment when a thoroughly somnolent market, after a decade of steadily rising prices and accommodative central bank policy, awoke to the fact that coronavirus would have serious implications for the world economy — and that, at the same time, […]

COVID-19: A Failure in Risk Management

Professor David Zaruk as Risk-Monger When a train crashes, authorities are on the scene to determine the cause. The COVID-19 coronavirus is fast becoming a global train wreck and unless we quickly assess the the mistakes leading up to this tragedy, more trains will pile into the station. The longer the Risk-Monger gets in the tooth, the more global mass panic events […]

Your Company Is Too Risk-Averse

Dan Lovallo, Tim Koller, Robert Uhlaner and Daniel Kahneman In theory, companies are supposed to create value for stakeholders by making risky investments. And as long as no single failure will sink the enterprise, those investments may be quite large. It won’t matter if even a significant percentage of them fail so long as the success of other bets compensates, which usually […]

How To Use A Risk Matrix

Julian Talbot There are better tools for risk assessment than risk matrices But, contrary to some opinion, they are not without some utility. So if your organization still insists on using them, here are at least two basic issues that are easy to fix when using a risk matrix. The first is failing to identify the risk. You can’t calculate a […]

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 […]

Fallacies of risk

by Judith Curry In addition to traditional fallacies such as ad hominem, discussions of risk contain logical and argumentative fallacies that are specific to the subject-matter. Ten such fallacies are identified, that can commonly be found in public debates on risk. They are named as follows: the sheer size fallacy, the converse sheer size fallacy, the fallacy of naturalness, the ostrich’s fallacy, […]

Risk in Focus 2020: Hot topics for internal auditors

Risk in Focus 2020 has been published by a consortium of institutes of internal auditors that includes the Chartered Institute of Internal Auditors (UK & Ireland), Deutsches Institut für Interne Revision (DIIR), IIA Belgium, IIA Nederland, IIA Spain, IIA Sweden, Institut Français De L’audit Et Du Contrôle Interne (IFACI) and the Italian Association of Internal Auditors. Welcome to Risk in Focus […]

2017 Global Risk Management Survey

By AON. The report concludes, that by the rapidly changing business environment and the world’s increased connectivity means that traditional and emerging risk are becoming more and more unpredictable. Despite big data, companies are less prepared for managing those risks. You might expect otherwise. The report highlights developments as disruptive technology and innovation, cybercrime and political risks and uncertainties. The main conclusions: Leaders […]

The evolution of model risk management

By Ignacio Crespo, Pankaj Kumar, Peter Noteboom, and Marc Taymans. McKinsey&Company An increasing reliance on models, regulatory challenges, and talent scarcity is driving banks toward a model risk management organization that is both more effective and value-centric. The number of models is rising dramatically—10 to 25 percent annually at large institutions—as banks utilize models for an ever-widening scope of decision making. […]

The future of risk: new game, new rules

Deloitte The risk landscape is changing fast. Every day’s headlines bring new reminders that the future is on its way, and sometimes it feels like new risks and response strategies are around every corner. The outlines of new opportunities and new challenges for risk leaders—indeed, all organizational leaders—are already visible. So what should leaders prepare for? This report profiles 10 […]

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 […]

Health and Safety Risk Management Review

PRIMO: This approach and methodology of Risk Management Partners and Gallagher Basset can result in a systematic and thorough picture of the actual health and safety aspects in a public organisation. It above all gives input for concrete management measures. The processes review and implementation are well interlinked and based on practical experiences. It is a tool for proactivity. Source: Risk Management Partners Overview […]

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 […]

COSO: Guide for Fraud Risk Management

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has developed – such in collaboration with the Association of Certified Fraud Examiners (ACFE), The Institute of Internal Auditors and American Institute of CPA’s (AICPA) –  an integrated fraud risk management program to support organisations with tracing, treat and control: Fraud Risk Management Guide. This guide provides implementation guidance that defines principles and points of focus for fraud risk management and […]

Cyber Risk demands Insurance and Risk Management

Cyber risk is no longer considered an emerging risk. Every organization should consider the financial statement impact of cyber exposures. Cyber risk is not static, and as such our framework serves as a tool for holistic cyber risk management. Aon Risk Solutions has launched insurance covers with the aim to extent on existing and more traditional cyber policies with embedding system failures, legal aspects […]