risk culture

Narim conference stresses importance of work floor to risk management

“In recent years risk managers have focused on getting their voice heard in the boardroom, but according to Dutch risk managers, the work floor presents the biggest challenge to embedding risk management throughout an organisation. A pool of audience members at last week’s Netherlands Association of Risk and Insurance Managers (Narim) congress in Utrecht revealed that 64% consider the work […]

Claims management

In the daily practice of risk management the profession of claims management within the local governmental sector in our view is strongly undervalued. It seems that that claims handling is strongly correlated to the culture of a country. While in England and Wales claims management has developed towards a true profession, in the rest of Europe this focus on organisational and public values […]

The Nature of Risk

By David X Martin The Nature of Risk is an easy-to-understand, entertaining, and memorable story designed to help readers face one of modern life’s most important and difficult tasks—confronting risk. Free of complicated theories or formulas, The Nature of Risk relies instead on a cast of familiar, forest-dwelling animals, each of which embodies a different approach to risk management. At least one of these […]

Board Engagement Report

By Strategic Risk A lack of alignment between a board and its C-suite executives can inhibit the board’s ability to deliver high-level strategy and functionality. Properly aligning a board with its top executives, including those in a risk management function, can be very difficult for a board facing time constraints, according to the survey. The StrategicRISK survey also revealed respondents […]

The economic problem of organizational risk appetite

Door Arie de Wild In our current era of major global challenges and worldwide crises the human race is contin- uously searching for solutions to the fundamental economic problem of how to determine which aims should be pursued and how limited resources ought to be allocated. Economics as the science that studies “human behavior as a relationship between ends and […]

Managing the people side of risk

Companies can create a powerful risk culture without turning the organization upside down. By Alexis Krivkovich and Cindy Levy for McKinsey & Company Insights & Publications Most executives take managing risk quite seriously, the better to avoid the kinds of crises that can destroy value, ruin reputations, and even bring a company down. Especially in the wake of the global financial crisis, […]

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 in respondents from the 2011 […]

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 havoc on passengers and airports […]

Learning to Love Volatility

In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder By Nassim Nicholas Taleb for The Wall Street Journal Several years before the financial crisis descended on us, I put forward the concept of “black swans”: large events that are both unexpected and highly consequential. We never see black swans coming, but […]

Innovation’s Nine Critical Success Factors

Source: Harvard Business Review Author: Vijay Govindarajan Your organization won’t innovate productively unless some underlying factors are in good shape. If “10” is outstanding and “1” is poor, how do you rate your organization on each of these? 1. A compelling case for innovation. Unless people understand why innovation is necessary, it always loses to core business or the performance […]

The art of admitting failure

When it comes to business, we are incredibly unaccepting and fearful of making mistakes. And forget about admitting to our mistakes, as that may be construed as a sign of weakness. But business and leadership is all about relationships. And in any relationship, things go wrong, mistakes are made, ups are followed by downs. The strength of a relationship is […]

Cohesion Policy

The main goal of PRIMO is to develop an holistic approach of city governance, i.e. an integrated approach where the city is considered as an entity and in which all institutions and stakeholders cooperate to realize political targets. In this approach the common adressing of risks and benefits, of chances and threatenings is crucial for success. Moreover the ‘tuning’ with […]

Running with risk

It’s good to take risks—if you manage them well. Source: McKinsey Quarterly Risk is what ultimately creates shareholder value, at least when it doesn’t destroy shareholder value, so managing risk should rank among the core activities of any business. Yet as a McKinsey Quarterly article pointed out back in 2003, “the corporate meltdowns of recent years suggest that many companies […]

Strategic decisions: When can you trust your gut?

Nobel laureate Daniel Kahneman and psychologist Gary Klein debate the power and perils of intuition for senior executives. Source: McKinsey Quarterly 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 […]

The Way Forward: Creating the Risk Intelligent Enterprise

Effective risk management is an integral part of value creation and preservation Source: Directorship In the “good old days” of the post-World War II era, buffers of space and time gave organizations more leeway to react and adapt. Events in remote places seemed to have little impact and were more insulated. Information was available to a relative few, whose power […]

The end of risk

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 popped round to neighbours with […]

Risk assessment: Keep it simple

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 search for convenient rules of […]

This Time Is Different

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 L. Friedman, journalist at the […]

The Six Mistakes Executives Make in Risk Management

Source: Harvard Business Review, October 2009 with by Nassim N. Taleb, Daniel G. Goldstein, and Mark W. Spitznagel “We don’t live in the world for which conventional risk-management textbooks prepare us. No forecasting model predicted the impact of the current economic crisis, and its consequences continue to take establishment economists and business academics by surprise. Moreover, as we all know, […]

Managing Risk in the New World

Source: Harvard Business Review, October 2009 with Robert S. Kaplan, Anette Mikes, Robert Simons, Peter Tufano, and Michael Hofmann. Moderated by HBR senior editor David Champion. “Five experts discuss the future of enterprise risk management. David Champion: How predictable was the financial meltdown of 2008–2009? Was it a Black Swan event or, rather, analogous to the next big California earthquake—something […]

Adjusting to new policy demands on corporate boards

Our point of view In response to the financial crisis, policymakers around the world are actively considering corporate governance reforms to improve the effectiveness of boards of directors. Ernst & Young believes that effective boards are vital to well-governed and successful companies and strong capital markets. For this reason, boards should make the changes necessary to strengthen their governance and […]

Risk and uncertainty

Part of the lecture “Truth, authority and policy in the twenty-first century” by Lisa Anderson (source The Thinking State, WRR Lecture 2007) “Considerable behavioral research suggests that the further away in both space and time a prospective risk seems to be, the less likely we are to take action to address or mitigate the risk itself. As Elke Weber puts […]