CERM® Risk Insights

Guest Post by Bill Pomfret (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Everyone comes to their workplace with the expectation, and often a clear plan, for an incident/accident-free day. And many times, the day goes just as planned, however 2.3 million people do not return home after work, they are killed by work related accidents and occupational exposures and diseases every single day, this corresponds to over 6000 deaths every single day.

That is only the tip of the iceberg, in addition there are around 340 million occupational accidents and another 160 million victims of work-related illnesses annually, many of which are life changing, not only to the victim, but often for whole families

These events are often sudden; someone or something is in the wrong place at the wrong time, and at that moment, perhaps only a split second, an incident or accident takes place.

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Guest Post by Howard Wiener (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

In the previous article in this series, we discussed the difference between Agile and business agility and how Agile 2 addresses some of the omissions and failings of traditional Agile.  Both Agile and Agile 2 focus on accelerating digital development; however, the benefits of any Agile approach can be obviated if it is not implemented within an agile management structure.  Addressing execution issues, as Agile 2 does, will not be sufficient by itself to get you where you need to go. 

Achieving business agility will also require that you reformulate your company into an agile organization capable of increasing the iteration speed of the Strategy-Execution Cycle we presented in the previous article.  This article will focus on aspects of what that will look like.

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Lengthy reigns at the top may be the next thing to get disrupted.
Carol Ryan – Wall Street Journal Writer

What’s the CEOs role in VUCA time? What do you think? According to the Wall Street Journal. “Point people to the light at the end of the tunnel” (Crash Course in Crisis Management, Wall Street Journal, March 28, 2020)

Story: The challenge: some CEOs are unfit for VUCA duty. In other words, they are not ‘VUCA or future-ready’. Take a look at what investors say in the Self Disruptive Leader survey from Korn Ferry (BTW: Pre-COVID:

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There are lots of lessons to learn from Amazon. Never stop innovating or questioning the fundamentals of your business. Disrupt yourself before others do.
Brad Stone – Journalist & Author

Consulting firms, academics, and consultants are developing Future Of Work models. Price Waterhouse Coopers (PwC) developed a scenario called the Future of Work: A Journey to 2022. The premise of the study is: “disruptive innovations are creating new industries and business models, and destroying old ones.” (‘The Future of Work: A Journey to 2022’, PwC, 2014).

 PwC outlined three distinct worlds of work: Orange, Green, and Blue.

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Guest Post by Matt Fieldman (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

The NASCAR pit stop – it’s exciting, intense, and can mean the difference between winning and losing a race. Accomplishing the three simultaneous necessities of moving quickly, completing each job with perfection, and having a flawlessly coordinated team seem impossible, yet it happens right in front of your eyes. The feedback is immediate: either the car gets off in less than ten seconds, and the driver can compete for a spot on the podium, or it doesn’t, and your race is over.

Outside of the racetrack, could the NASCAR pit stop be the answer to exciting young people about manufacturing? Could you use lessons from NASCAR to improve your company’s teamwork?

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Guest Post by Bill Pomfret (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

True risks are often different than perceived risks. Due to human curiosity, the desire to sell news, 24-hour-a-day news blitz, and current trends, some folks have a distorted sense of risks. Most often, people fear the lesser or trivial risks and fail to respect the significant dangers faced every day.

We live in a dangerous world. Yet it is also a world safer in many ways than it has ever been. Life expectancy is up. Infant mortality is down. Diseases that only recently were mass killers have been all but eradicated. Advances in public health, medicine, environmental regulation, food safety, and worker protection have dramatically reduced many of the major risks we faced just a few decades ago.

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I think we should be very careful about artificial intelligence. If I had to guess at what our biggest existential threat is, it’s probably that. So we need to be very careful.
Elon Musk – Entrepreneur

Artificial intelligence (AI) and robots conjure images of killer robots like the Terminator movie.

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Guest Post by Howard Wiener (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

If you are running a business today, you probably incorporate digital elements in your products and services.  At the very least, you employ digital technology in the operation of your business.  It’s likely that you have adopted an Agile framework and possibly even DevOps processes.  It’s also likely that you are not getting the productivity boost from it that you should.

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What happens if an autonomous AI robot has preemptive authority to use deadly force to ensure its safety or the public’s safety ?  We are not too far from this when autonomous robots will have risk based, problem solving and decision making capabilities and even statutory authorities.

Last week, the San Francisco Board of Supervisors gave the San Francisco Police Department authority to use killer robots.  The vote was 8 to 3 to approve robo cops.  San Francisco is the most liberal city in the United States. Oakland and other cities are thinking the same.

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There are several risk management solutions that organisations can implement to strengthen their organisational culture to create a positive ‘risk culture’ outcome.

These organisational practices include:

1. Create an accountable organisation.
2. Implement the appropriate organisational design.
3. Create awareness of the strategic benefits of risk management.
4. Create an effective risk governance structure.
5. Create an effective risk function.
6. Hire the right personality to head the risk function.
7. Create a just and psychologically safe culture.
8. Formalise informal risk communications.
9. Create clear escalation and reporting pathways and trigger points.
10. Simplify risk management tools, activities, and processes.

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Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Seeing eye dogs, or guide dogs, are so well trained that they know right from wrong.  Even though their ‘master’ gives an order the trained canine won’t obey unless it’s safe; and that’s what we call intelligent disobedience.  The dog is praised for exhibiting such behaviour.  However, in corporate and project management circles, and despite the need for human intelligence enhanced through training, qualifications and experience, such behaviour is often branded as just plain disobedient.

Many organisations have some set of rules and regulations which govern expected norms of behaviour.  They form part of an organisation’s culture and such ‘expectations’ become some form of ethical standard.  Great…when there is ‘business as usual’.  But in a crisis standard operating procedures tend not to apply.  These situations, as well as people, can become heated and with heat can come fire and the tell-tale smoke that things aren’t quite right.

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Guest Post by Alex Sidorenko (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

In 2021, risk team implemented a quantitative risk-based approach to insurance renewals which resulted in reducing the cost of insurance by 60% and improving the quality of coverage across all insurance lines. This approach allowed us to save, or rather pay a fair price for insurance across the globe. Key to success was not to rely on market “best practices”, but on testing various hypotheses in the market and relying on data.

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Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Communication…dictionarily is the imparting or exchanging of information by speaking, writing, or using some other medium.  It’s essential to humankind and allows us to live, work, trade and co-exist.  It’s the basis of society, culture and civilizations and through communication there’s understanding and establishment of common beliefs.

Communication allows us to impart information, clarify such information and rectify misunderstandings.  Of course, if miscommunication occurs and is acted upon then mistakes may well happen, and these mistakes can then cause problems.  In Project Management such mistakes often result in delays, cost overruns, quality shortfalls, disputes and, possibly, project failure.

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Guest Post by Bill Pomfret (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Since the 1990s, organisations have attempted to improve safety culture. They have tried top-down approaches, with senior management making statements about how important safety is. They have tried bottom-up hearts and minds programs, encouraging workers to work safely, and stop if a job can’t be done safely. There have been great strides, and examples of success, such as the UK 2012 Olympic development.

However, many safety culture programs stall after some initial improvements. Senior managers have invested in the program. Workers on the frontline want to be safer and healthier. Sometimes the obstacles come from the middle managers and supervisors, who are invested in existing ways of doing things. For a busy manager there just isn’t time to get ahead with improvement programs while they are doing the day-to-day supervision and management tasks.

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The basic premises of how the economy works have shifted under our feet and the government will have to respond.
Gautam Mukunda – Writer

Can you imagine a conversation with a work Alexa giving you legal assistance instead of a human lawyer? Fasten your seatbelt. Legal and many other professions are being disrupted.

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