CERM® Risk Insights

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

Some common reasons why requirements can cause risk to a project are:

• To be determined (TBD)
• Late requirements definition
• Unclear requirement definition
• Changing requirements
• Late requirement flow down to subcontractors
• Incorrect or poorly defined interface documents

This paper explains how poorly defined requirements can impact the project.

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

On September 15, 2021, ASQ announced the formation of the Center for Electoral Quality and Integrity. This announcement caused a conflicted reaction.  On the one hand I liked that the Government Division, which was pushing this action, was showing some level of activity, after almost none for several years. One the other hand, I just laughed at the idea that ASQ and Government Division was going to, or even be capable of, having an impact on electoral quality or integrity. This is not a case of believing the objective is bad.

It is a case of realizing that this is not the 1990s when quality was a key priority of governments around the world. And that ASQ does not have the same level of influence it had, when in the 1990s it was instrumental in getting Education added to the Baldrige Award.

This piece discusses the white paper on Electoral Quality and Integrity which the Center seeks to implement. It also discusses the forces likely to prevent ASQ from being successful.

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

This story 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 egos got in the way of a practical low-cost approach resulting in unplanned schedule and cost growth.

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

I am pretty close to completing my first book – Agile Enterprise Risk Management, Risk-Based Thinking, Multi-Disciplinary Management and Digital Transformation. It is now at the publishers, awaiting finalization. I have established a site for the book and this is the home page text that describes what AERM is all about.

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

Teams, they are everywhere; sports teams, project teams, political parties, rock bands, military units, the list goes on.  The team isn’t just about the people in the limelight it’s also about the backroom boys and girls who provide logistical, technical, administrative, and sometime moral support to the front men and women.  Even the lone competitor or the one-man-band needs some support; everybody needs somebody sometime.

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

What is a risk professional?

Risk management is an objective-focused concept. Risk professionals must, therefore, be a catalyst, an advocate, and trusted friend for driving superior organisational performance.

They must walk alongside executives, managers and staff to achieve organisational objectives by making better decisions under uncertainty, risk, and opportunities.

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

New superconducting magnet breaks magnetic field strength records, paving the way for practical, commercial, carbon-free power fusion energy. MIT and U.S. startup company Commonwealth Fusion Systems (CFS) led the project. This test paves the way for a demonstration device to show a plasma can be created and contained that generates more energy than it consumes. The demonstration device is expected to be completed in 2025. The hope is that in the future there will be thousands of fusion plants powering clean electric grids around the world helping to save the planet.

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

We have general risks and, quite often when risks manifest themselves the various militaries around the world are called in to deal with the issues, crises, disasters, and catastrophes that occur.  The military do not enter these on their own volition nor are they of their own making but, in line with the principle that risk is best dealt with by the party most suited, the military are tasked by their lords and masters.

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

I challenge you to read this paragraph and then close your eyes and focus. Think about the future. What does it look like to you? How do you think humankind operates 20, 30, or 40 years from now? Are we even more digitally connected than we already are? What behaviors or actions are commonplace now that might be nonexistent then?

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

“You’ll be damned if you do and damned if you don’t”.  This was the message from First Lady Eleanor Roosevelt for those situations when you believe in your heart that you are doing the right thing even if, or when others believe it to be wrong.  This is what leaders do, they lead based upon what they believe to be right and will reap the consequences, whatever the outcome.  Leadership is about doing; it’s about making things happen through the people who follow and enabling those people to make it happen.  It’s also about being responsible for your actions and those of the others who have acted on your behalf.

Leadership has always been around in some form or another; there is always a leader of any pack or tribe.  Successful leaders and their idiosyncratic styles are not only analysed and biographed but also emulated and even imitated.  Practically speaking though it boils down to the ability of some to influence, motivate and direct teams of individuals to undertake some task or other.  The traits of leadership in turn are a function of a leader’s character and the situations in which they find themselves, the people around them, and the task at hand.

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

Structures are all around us, even chaos has structure albeit fractal.  We humans too involved in structures; not only do we construct physical structures, but we form organisational structures and create civilizations using the social, economic and cultural structures that rule our lives.

Some of these structures collapse due to human error, natural forces outside of our control, and man’s destructive and violent nature.  The reasons for such collapses may not be understood but, being inquisitive we strive to find out.  But these endeavours are not only earthbound as we also seek to work out the structure of the universe and its workings.  An early example of such work is from the astronomer Kepler who developed his model of our solar system.  Although geometrically fascinating it’s a far cry from our modern-day perceptions

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

Question for all who read this: to succeed at any business venture, you merely need to have huge resources, dedicated personnel, and a quality product or service, right? From there, it’s just collecting money and living a good life.

This presumption is more common than you realize, and could not be more wrong and misguided. In a world where exponential change and digital disruptions abound, you simply cannot rest on your laurels and merely rely on what you’ve already built. Because of the rapidly accelerating rate of change, your business is only ever as strong as its next innovation.

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

A classic question for all CEOs and floor sweepers alike.  What the heck do we do and what do we want to do?  In big business there is visioning, missioning, goal setting, target measuring, market analysis, focus groups, policy and much much more, more and more.  In small business, we offer far more than we would like to do, but in order to make ends meet, we take on more and more until we finally burn out or are lucky enough to realise a cash flow that will enable us to niche or focus on what we do and what we want to do.

Guest Post by Annette Davison and Ian Wright Ph.D. (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Risk is the impact of uncertainty on achieving your objectives – the impact can be either positive or negative outcomes (ISO 31000). Governments have multiple objectives they have to meet – health and wellbeing, economic, environmental, ethical and so on. Each of these objectives essentially becomes a risk endpoint. The fundamental tenets of risk assessment are understanding the system (the context), understanding and assessing the risk (against your identified objectives), managing the risk and then monitoring whether the risk is actually controlled, and whether a further risk treatment needs to be applied.[1]

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

In Part 1, we looked at the two relevant dimensions for decision-making under certainty, risk, and uncertainty that form the certainty-uncertainty spectrum are:

1. Degree of certainty – It ranges from close to certainty to far from certainty.
2. Level of predictability and control – It moves from close to predictability and control to far from predictability and control.