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This story is about risk at the enterprise program/project level. It is an example of centering your design around a high-tech solution to a problem when a low risk proven technology would have more than sufficed. Technical expertise ego got in the way of a practical low-cost approach resulting in unplanned schedule and cost growth. [Read more…]
Using IOT Intelligent Things to Monitor Risk in Real-time
Although in ISO 31000 monitoring risk is another of its key tenets, I again see little monitoring in most risk management systems. Periodic review, dashboards, heat maps, and KRI reports are all Review (a different ISO 31000 tenet) not monitoring. IoT technology can deliver real-time monitoring of risk for more than just physical environmental metrics.
To monitor means to supervise and continually check and critically observe. It means to determine the current status and to assess whether or not the required or expected performance levels are actually being achieved. [Read more…]
Awareness of risk can lead to unforeseen risk behaviors based on knowledge that is sufficiently convincing to lead to false positives.
“The more you know, the more you know you don’t know.”
― attributed to Aristotle
Probably one of the most recognized but least understood disruptive technologies for Risk Management in the 2020’s is Big Data. [Read more…]
ISO 31000:2018 stresses the need for risk management to be integrated into operational functionality and decision making, but little has be written on how to actually achieve this. Scenario Analysis is not a modern technology but how you can provide operational management with risk based decision marking collateral. [Read more…]
Guest Post by Greg Caroll (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
The 2009 release of ISO 31000 was the first step across the threshold into 21st century risk management. Unfortunately the industry that has developed around it has firmly grabbed the doorway and won’t let go. Although the latest revisions make references to decision making and integration into functional purpose, it totally misses the point of risk management, which is to assist navigating a complex world. [Read more…]
Firstly, what is ‘good communication’? Many people have views, but my definition is “the effective and efficient transfer and receipt of information by the right people, at the right time, in the right medium, at the right place and in the right amount”. [Read more…]
We all use our work experience to a greater or lesser extent and often the most recent project is recalled as it is at the forefront of our minds. However, is it the most relevant if we try to adapt our most recent, and hopefully successful, experience to meet the current situation? [Read more…]
Houston Texas is one of the few local governments in the United States with an Enterprise Risk Management (ERM) based risk assessment approach. This policy was reviewed and updated in 2016. This was the latest step in the city’s use of risk assessment.
From 1996 to 2004, the city outsourced risk assessment. The assessment was performed every five years. Beginning in 2009, the city’s audit department took over the assessment. This article discusses the risk assessment process used by the City of Houston.
You’ve started a new project; or joined one that’s up and running or it’s nearing closure – and it’s going well. With no problems to speak of, it’s business as usual; so stick to the plan and it will be all right in the end ‘cos nothing can go wrong.
Or perhaps there are problems; but all projects have problems! It’s not your problem as the bid team, planning team, or those awkward stakeholders and ever present over demanding clients can be blamed.
The project will eventually get finished if it’s on, or off, the rails. The project is ‘just a job’ and management just carry on clocking-in and clocking-out regardless of the situation. [Read more…]
The 2012 Moving Ahead for Progress in the 21st Century Transportation Act (MAP 21) requires state departments of transportation to develop a Transportation Asset Management Plan (TAMP). The TAMP is to include a Risk Based Asset Management Plan (RBAMP). The two plans must be certified by the Federal Highway Administration (FHWA) by June 30, 2019. Certification failure will result in National Highway Performance Program funds being reduced by thirty-five percent. As a carrot, federal funds can be used to cover the cost of developing these plans. This article discusses the FHWA’s approach to risk management. It also shows that the FHWA approach will filter down to local governments. [Read more…]
“To do something very dangerous takes a certain lack of imagination”
– Anonymous
Governments and companies worldwide are emerging from the current financial crisis and subsequent recession. While governments are crafting new regulations, businesses around the world are walking in shifting sand as risk exposures are high and new regulations will create compliance challenges. According to a recent survey by Korn/Ferry International, corporate leaders are focusing more attention on risk management after what is considered by many to be excessive risk-taking during the boom times that factored into the global financial crisis. [Read more…]
In the workplace we have identified and attempted to eradicate racial and gender discrimination, sexual harassment and bullying. We now battle age discrimination in our aging society in a (supposedly) increasingly politically correct world. However, our intellects are also being abused as individuals find increasing ways to breach of the bounds of reasonable behavior and put our sanity and dignity at risk. [Read more…]
In the risk-neutral world, all business and government continuity planning would be risk-balanced. However, in reality, risks, threats, hazards and their consequences change depending on an organizations exposure, sensitivities to impact and other factors. For instance, a natural disaster, can occur without much warning and can have direct and indirect impact on an organization. Complicating the Business Continuity Planners life is a simple fact, events have unforeseen consequences that can rarely be planned for. [Read more…]
What do you think is the #1 business risk in 2018 according to the World Economic Forum?
Guess again? [Read more…]