Society faces a critical juncture in one of the defining challenges of our time: the loss of biodiversity. It places severe costs on our economy. Stakeholders require information regarding their exposure to nature-related risks, and how entities are improving resilience across strategic, operational and financial dimensions. But how does biodiversity loss impact financial institutions? Read more
Corporate
Lessons in contract certainty
Strategic Risk. Contract certainty is always important for businesses, but the coronavirus crisis has shone a light on just how risky it can be when things go wrong. The consequences when contract certainty is not in place can be severe, as Martin Hegelbach, Head Property & Specialty at Swiss Re Corporate Solutions, explains. Read more
Issues Paper on resilience solutions for pandemics
European Insurance and Occupational Pensions Auhority (EIOPA) The paper recognises that private insurance solutions alone will not be sufficient to protect society against the financial consequences of future pandemics. Solutions will require both public and private sector involvement, and build on the following four key elements: Proper risk assessment Risk prevention and adaptation measures Appropriate product design Risk transfer Insurance […]
The IIA’S Three Lines Model
Organizations are human undertakings, operating in an increasingly uncertain, complex, interconnected, and volatile world. They often have multiple stakeholders with diverse, changeable, and sometimes competing interests. Stakeholders entrust organizational oversight to a governing body, which in turn delegates resources and authority to management to take appropriate actions, including managing risk. For these reasons and more, organizations need effective structures and […]
IIA Unveils New Three Lines Model
Matt Kelly The Institute of Internal Auditors has unveiled a revamped version of its famed Three Lines of Defense model for risk assurance. Perhaps the most notable change: no longer calling it the Three Lines of Defense. Instead, the IIA guide is now officially known as “The Three Lines Model” — a nod to criticism over the years that the word “defense” […]
Structured Client Communications: The Key to Manage Risk in a Business Relationship
Stephen P. D’Alessandro | International Journal of Finance, Insurance and Risk Management, Volume 10, Issue 1, 135-148, 2020 Purpose: The key objectives of this paper are to provide a review of the current context within a regulated sector such as financial services which call for structured communications as an integral part of overall corporate governance and to provide a practical […]
McKinsey on Risk
Thomas Poppensieker | Chair, Global Risk Editorial Board McKinsey & Company “Our ninth issue of McKinsey on Risk arrives amid the greatest global crisis since the Second World War. McKinsey and the Risk Practice have been in constant conversation with healthcare, public-sector, and business leaders to help assess and meet the diverse challenges raised by the COVID-19 pandemic. As we go […]
FERMA European Risk Manager Report
FERMA/PWC We are pleased to present the results of the 2020 European Risk Manager Survey. The survey has taken place every other year since 2002 and represents the widest available picture of views of professional risk managers across Europe. The publication of the 2020 Survey is taking place in exceptional circumstances. Before the outbreak of the Covid-19 virus, we could […]
Banking imperatives for managing climate risk
More than regulatory pressure is driving banks to manage climate risk. Financing a green agenda is also a commercial imperative—but specialized skills are needed to protect balance sheets. The surface temperature of the Earth has risen at a record pace in recent decades, creating risks to life, ecosystems, and economies. Climate science tells us that further warming is unavoidable over […]
Board Leadership and Performance in a Crisis
Jack “Rusty” O’Kelley III, Grace Cheng, Beatrice Ballini, Constantine Alexandrakis, Justus O’Brien, Laura Sanderson, Melissa Martin, PJ Neal, Todd Safferstone For board directors and chief executive officers. Every industry across the globe has faced a crisis at some point in time. While most large companies survive, many struggle for years following a period of severe adversity. Others prevail and become […]
Your Company Is Too Risk-Averse
Dan Lovallo, Tim Koller, Robert Uhlaner and Daniel Kahneman In theory, companies are supposed to create value for stakeholders by making risky investments. And as long as no single failure will sink the enterprise, those investments may be quite large. It won’t matter if even a significant percentage of them fail so long as the success of other bets compensates, which usually […]
Managing risk from the front line
PriceWaterhouseCoopers | Risk in review, 6th Annual Study April 2017* The heart of the matter: Front-line leadership, collaborative success It’s been almost a decade since the 2008 global financial crisis and its aftermath forced companies into a defensive risk management posture, pulling responsibilities back from the business units to the second line of defence as they fought to weather the storm. […]
Biggest barrier to strong front line Risk Governance Model …
Tim Leech “I find it ironic that the 2 professions – the risk management and internal audit professions – most responsible for promoting effective risk governance are currently the biggest risk to that goal. That can change quickly if leadership of the IIA and RM associations aggressively and clearly communicate the need to change, and equip members with the tools […]
What the risk managers are saying
With so many exciting workshops, panels and presentations throughout the AMRAE conference, we caught up with speakers and session leaders to find out what hot topics they will be covering, what risk managers can learn and their take on the biggest risks facing risk managers today. Read more
Moderate or high risk?
Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization on Twitter today “WHO deeply regrets the error in this week’s situation report, which inserted the word “moderate” inaccurately in the #coronavirus global risk assessment. This was a human error in preparing the report. I have repeatedly stated the high risk of the outbreak bit.ly/2U52h0x“.
Risk Management Practices Adopted by European Financial Firms with a Mediterranean Connection
Simon Grima and Frank Bezzina Following the economic and financial crises, any activity involv ing internal controls, especially risk management, has been given more attention. With this study, we aim to contribute further to the existing literature on risk management by looking at practices adopted by financial services firms licenced in Europe with a Mediterranean connection. We used parts of […]
Trust in Regulatory Regimes
Edited by Frédérique Six and Koen Verhoest Within political and administrative sciences generally, trust as a concept is contested, especially in the field of regulatory governance. This groundbreaking book is the first to systematically explore the role and dynamics of trust within regulatory regimes. Conceptualizing, mapping and analyzing trust between regulators, regulatees and citizens, expert contributors systematically review the existing […]
Want a better decision? Plan a better meeting
Aaron De Smet, Gregor Jost and Leigh Weiss Effective meetings produce better business decisions. Yet too many decision meetings are doomed from the get-go. You can do better. Decisions are the lifeblood of organizations, and meetings are where important business decisions often happen. Yet many executives are nonplussed—at best—when describing their own experience of meetings. Read more
Daunted by Complexity: Traditional Management Theory Is No Match For Wicked Problems
Paul Barnett Today business leaders are challenged by the scale and speed of change, by increasing complexity, and by growing stakeholder expectations. Many are just not up to the job. Management theory and practice as taught in most business schools is not up to the job either. It is outdated. And I will substantiate this claim. Read more
Flipping the script on climate action
Jens Burchardt, Michel Frédeau, Philipp Gerbert, Patrick Herhold, and Cornelius Pieper | Boston Consultancy Group Around the globe, public pressure to address carbon emissions is increasing. Yet the economic debate around climate action continues to be dominated by skepticism. Regulators and corporations remain reluctant to promote ambitious abatement for fear it might hurt economic competitiveness and growth. This reluctance is […]
Five reasons projects fail – and what risk managers need do about them
Hans Læssøe, founder of AKTUS and former risk manager at The Lego Group, examines some of the common reasons that projects fail and how risk managers can change the way they operate to add value to decision making and project delivery. When you look at or analyse a portfolio of projects, this often shows that many projects fail to meet […]
Directors and Officers Insurance Insights 2020
The range of exposures facing directors and officers (D&Os) – as well as the resultant claims scenarios – have increased significantly in recent years. With corporate management under the spotlight like never before, Allianz Global Corporate & Specialty (AGCS) experts provide both a reflection of the current state of the D&O insurance market and also point the lens forward to […]
5 Risks for Legal and Compliance Leaders to Watch in 2020
The Gartner Legal and Compliance Hot Spots report identifies the top risk trends legal, compliance and privacy leaders should focus on in the next two years. The adage “The only constant is change” is one with which legal, compliance and privacy executives are all too familiar. Technological advancement is a primary, most obvious, driver of such change, creating both efficiencies […]
The risk-based approach to cybersecurity
Jim Boehm, Nick Curcio, Peter Merrath, Lucy Shenton and Tobias Stähle The most sophisticated institutions are moving from a “maturity based” to a “risk based” approach for managing cyberrisk. Here is how they are doing it. Top managers at most companies recognize cyberrisk as an essential topic on their agendas. Worldwide, boards and executive leaders want to know how well cyberrisk […]