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 […]

Strategic Disaster Planning

Source: ICMA. Those who work with communities in the aftermath of natural disasters see the importance of advance planning firsthand. Disaster plans save time, money, headaches and, ultimately, they can save lives. In short, planning makes disasters less disastrous. And yet, it can be difficult for communities to prioritize disaster planning, particularly for those with limited time, budget, or staff. These communities can also be hit the hardest when a disaster does strike. One of the biggest challenges we see […]

Acceleration on Disaster Reduction Sendai Framework

The European Committee of the Regions (CoR), European Commission and the United Nations Office for Disaster Risk Reduction (UNISDR) seek to accelerate the implementation and monitoring of the Sendai Framework, in order to reduce the impact of natural disasters. The scope is that disaster resilient development needs to be imbedded into all public investment strategies by transforming the commitments, made by policy makers and stakeholders, into national and local action and to accelerate regional implementation and monitoring. “The intensity and frequency of […]

Climate change: global reshuffle of wildlife will have huge impacts on humanity

Source: The Guardian. Mass migration of species to cooler climes has profound implications for society, pushing disease-carrying insects, crop pests and crucial pollinators into new areas, says international team of scientists. Global warming is reshuffling the ranges of animals and plants around the world with profound consequences for humanity, according to a major new analysis. Rising temperatures on land and sea are increasingly forcing species to migrate to cooler climes, pushing disease-carrying insects into new areas, moving the pests that attack […]

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. […]

Climate breaks multiple records in 2016, with global impacts

By World Meteorological Organization The year 2016 made history, with a record global temperature, exceptionally low sea ice, and unabated sea level rise and ocean heat, according to the World Meteorological Organization (WMO). Extreme weather and climate conditions have continued into 2017. WMO issued its annual statement on the State of the Global Climate ahead of World Meteorological Day on 23 March. It is based on multiple international datasets maintained independently by global climate analysis centres and information submitted by […]

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. More complex models are being created with advanced-analytics techniques, such as machine learning, to achieve higher performance standards. A typical […]

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 […]

The Risk of Leadership

A plea for a new search for modern leadership. By Jack Kruf Yes, we have our democratic system as a great set of principles and values for good public governance. Public leadership is embedded in this, at least it should be. You may expect excellent results, because the democratic system traces back to the Greek δημοκρατία 508 BC. From there it developed until now, anno 2017. Considering the state of society and natural ecosystems you may expected more of 2525 […]

European Public Sector Award (EPSA)

Since its launch in 2007, the European Public Sector Award (EPSA) has received, assessed and made accessible more than 1000 public practices from 39 European countries and the European institutions. Among the “top submitters” were countries such as Spain, Romania, Poland, Italy, Austria and Germany. These cases form a rich database of valuable experiences at the service and disposal of all European public administrations and make the European Public Sector Award the European network of public sector excellence. For all […]

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, […]

Climate change, impacts and vulnerability in Europe 2016

Europe’s regions are facing rising sea levels and more extreme weather, such as more frequent and more intense heatwaves, flooding, droughts and storms due to climate change, according to a European Environment Agency report published today. The report ‘Climate change, impacts and vulnerability in Europe 2016’ by the European Environment Agency assesses the latest trends and projections on climate change and its impacts across Europe and finds that better and more flexible adaptation strategies, policies and measures will be crucial to […]

The Routledge Companion to Strategic Risk Management

Book by Professor Torben Juul Andersen*, published by Routledge Press, London, 2016. Professor Andersen’s work presently is focused on several key aspects of risk leadership, including—notably—an examination of how top management assures effective implementation of risk policy throughout the organization. Additionally, he is supervising doctoral work that is directed toward better understanding managing organizational uncertainty and developing methodologies for earlier detection of emergent risks. Managing risk in and across organizations has always been of vital importance, both for individual firms and for […]

The Global Risks Report 2017

Published as the 12th annual edition by the World Economic Forum, this year’s findings are testament to five key challenges that the world now faces. The first two are in the economic category, in line with the fact that rising income and wealth disparity is rated by GRPS respondents as the most important trend in determining global developments over the next 10 years. This points to the need for reviving economic growth, but the growing mood of anti-establishment populism suggests we […]

The Citizen in the Centre?

By Erik Koopman. Municipalities face significant challenges and uncertainties in carrying out their new tasks in the social domain. Many municipalities have chosen for a central role for social district teams. Even though the district teams vary greatly in their tasks and structure, in general the teams exist to discover the genuine need for help and support for citizens and to be able to see the ‘bigger picture’ in order to recognise and solve problems early, integrally and effectively. This […]

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 […]