Understanding the ‘Risk Management’ Process

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

There are two widely-used risk management standards:

• ISO 31000:2018
• COSO ERM 2017

In my previous blog[i], I presented details on how these risk management standards address the development of a risk-aware culture – a necessary foundation for risk management success. As promised, this blog will address the risk management “process.” This is how the organization addresses specific risks. [Read more…]

Project Ain’t Broke: Don’t Fix It: But Are You Maintaining It?

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

Projects go wrong and in our binary world projects either succeed or fail.  There is a plethora of articles, opinions and reasons for such success and failure but why, and how, is this possible when we have more and more ‘qualified’ project managers?

When a project is still moving or hasn’t fallen apart it may be categorised as “it ain’t broke” and optimistic project managers may conclude “no need to fix it“.  However, we all know that preventive maintenance will allow for successful operation and minimise breakdowns and avoid trouble, “a stitch in time saves nine“. [Read more…]

SCRM VUCA

Just think of all the changes occurring in your organization. New regulations. Changing customers with new product preferences. New competitive product offerings. New technologies. New branding. New business platforms. New business models. Compressed lifecycles. Change is no longer gradual. Change is rapid and abrupt.

Supply Chain Risk Management (SCRM) is being able to adapt to disruptive changes occurring in supply chains, management, and even all professions (quality, engineering, supply management, etc.). As well, we believe general management is evolving into risk management.

A few years ago, we believed competitiveness was the supply chain paradigm buster.  We even wrote in Supply Management Strategies: 

“Capitalism, competitiveness, dot.com profitability, and innovation are today’s paradigm busters. They are what drive today’s New Economy. Capitalism is triumphant in almost every activity in every corner of the world. National boundaries are disappearing as goods and services move freely. Competitiveness and innovation are continually destroying the current business paradigm. Just as a business feels it has found its niche and understands what is going on, supply management and sourcing rules change again.” [Read more…]

The Antidote to VUCA is OODA

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

The date is September 15, 2008.  The crisis in subprime mortgages had been going on for a little over a year.  It was triggered in the last half of 2006 when house prices began to fall as the housing bubble in the United States burst.  This caused those who had taken NINJA (No Income, No Job, or Assets) loans to buy their home, with the expectation that prices were going to increase five per-cent year on year forever, to default.  This accelerated the decline in home prices which, in turn, accelerated the number of defaults – a financial and economic death spiral had formed.

[Read more…]