Essay

Ready for the rising water

Utrecht University The largest evacuation ever in the Netherlands due to flood risk is 25 years ago this winter. 250,000 people had to leave their homes in river areas due to the dangerous high water levels of the Rhine, Maas and Waal. Several water researchers at Utrecht University have personal memories of this. They reminisce on those days and look into the future. Are we […]

Enhanced cyberrisk reporting: Opening doors to risk-based cybersecurity

Jim Boehm, James M. Kaplan, Peter Merrath, Thomas Poppensieker and Tobias Stähle New cyberrisk management information systems provide executives with the risk transparency they need to transform organizational cyberresilience. Executives in all sectors have deepened their understanding of the dangers cyberrisk poses to their business. As hacks, cyberattacks, and data leaks proliferate in industry after industry, a holistic, enterprise-wide approach to cybersecurity […]

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 […]

Financial Literacy: The Case of Poland

PRIMO: Financial literacy is essential in the world of public value and risk management. Financial engineering is one of the key factors in our FORTE™ framework for good governance, published by Jack P. Kruf, Simon Grima, Murat Kizilkaya, Jonathan Spiteri, Wouter Slob, John O’Dea in 2019.  Financial literacy is a factor in the quality of decision making. This study shares […]

Here’s why accountants could be the climate heroes we all need

Zubair Abid Arain Climate change has caused widespread destruction. Environmental degradation was responsible for 9 million premature deaths in 2015, besides causing the economic loss of hundreds of billions of dollars annually… A new accounting standard to account for climate costs might be the right approach – and there are multiple reasons why this could nudge emitters in the right direction. […]

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

What Is Public Value? How Can It Be Created & Sustained

Public Value is a theory for public management advanced by Professor Mark Moore of the Harvard Kennedy School of Government. In 1995, Professor Mark Moore’s seminal book on ‘Public Value’ (Moore, 1995) was published. Over the previous two decades, staff and students at Harvard’s Kennedy School of Government, where Moore taught, engaged in conversations about how to produce excellence in […]

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 […]

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 […]

Auditing ahead of the wave requires foresight

Jaap van Oerle. Every time a corporate scandal makes headlines, the question “Where were the auditors” comes up. Or should come up. After all, internal and external auditors claim that they “help Boards to protect value”. While the external auditors usually face substantial criticism after a scandal, more often than not, no-one looks at the internal auditors. Read more

Fiscal resilience: Tools to manage state budgets in an age of uncertainty

Jonathan Davis, Navjot Singh and Todd Wintner When the next economic downturn comes, states will need to be more deliberate about how they manage expenditures and revenues than ever before. An emerging theme across US states —and many regional governments in developed economies— is persistent fiscal uncertainty. Demographic change, spiraling healthcare inflation, and underfunded liabilities have placed states under unyielding fiscal pressures.

Climate crisis: 11,000 scientists warn of ‘untold suffering’

Damian Carrington. Statement sets out ‘vital signs’ as indicators of magnitude of the climate emergency. The world’s people face “untold suffering due to the climate crisis” unless there are major transformations to global society, according to a stark warning from more than 11,000 scientists. “We declare clearly and unequivocally that planet Earth is facing a climate emergency,” it states. “To secure […]

Banks and the changing face of risk

By Cindy Levy, Olivia White and Hans Helbekkmo | McKinsey & Company In a rapidly changing risk landscape, successful banks will deploy highly skilled, diverse, and agile risk organizations. The world is changing in ways that are reshaping the risk landscape. We see three inter-related changes as particularly relevant for banks. First, the digital revolution is drastically increasing the availability and use of data, and […]

Turning up the heat on city planners

By Garry Booth | Lloyd’s Madrid’s climate could resemble that of Marrakech in 30 years’ time, while London will experience the sort of summer conditions that residents of Barcelona are accustomed to today. This is the finding of new research by the Crowther Lab, whose environmental scientists tested the extent to which cities around the world are likely to be […]

Back to basics in decision making

Jack Kruf Is it wise to choose to go back to basics and divert from the ever expanding swamps of risk management? Yes, I think it is. The problem is that ‘risk’ is a made-up expression and has no commonly accepted or applied meaning. Risk is still widely associated with failure rather than with success. Most leaders and CEO’s do associate […]

Cybersecurity: Linchpin of the digital enterprise

James Kaplan, Wolf Richter and David Ware | McKinsey & Company As companies digitize businesses and automate operations, cyberrisks proliferate; here is how the cybersecurity organization can support a secure digital agenda. Two consistent and related themes in enterprise technology have emerged in recent years, both involving rapid and dramatic change. One is the rise of the digital enterprise across […]

A framework for fostering effective energy transitions

By Daniel Hund, Sébastien Léger, Arnout de Pee, Occo Roelofsen, Thomas Seitz, and Kassia Yanosek The new Energy Transition Index looks at 114 countries’ energy systems’ performance and transition readiness. Globally, energy systems are experiencing significant and fast change, driven by forces such as technological innovation, changes in consumption patterns, supply dynamics, and policy shifts. These forces offer opportunities to […]

10 years later: What Local Governments Learned from the Great Recession

By Cathy Swanson-Rivenbark, ICMA-CM, AICP, CEcD The official dates of the Great Recession, from December 2007 to June 2009, mean that June 2019 signals the “supposed” ten-year aftermath to which we can apply hindsight. For local governments, the timeline of the downturn proved prolonged for employees and postponed for their governments. Employees first felt the impact at home – literally—as […]

Myopic Voters and Natural Disaster Policy

Andrew Healy, Loyola Marymount University, and Neil Malhotra Stanford University In our democratic system citizens vote for their representative politicians, elected councils as well their public leaders, governors and governing councils. But what about the perception by citizens of how risks are handled by their leaders and what about citizen’s appreciation of proactive thinking by councillors related to public risks when it comes […]

The secret of risk management

John O’Dea Risk Management is as old as Methuselah. Although there are no records in the book of Genesis that indicate that Adam and Eve carried out a risk assessment, their world and ours might have been a different place had they given it some thought. The world might also have been a different place had the developed nations – […]

The Risk of Leadership

A plea for a new search for modern leadership* By Jack Kruf Yes, we have our democratic system as a great set of principles and values for good public governance. Public leadership is embedded in this, at least it should be. You may expect excellent results, because the democratic system traces back to the Greek δημοκρατία 508 BC. From there […]

Confronting the risks of artificial intelligence

By Benjamin Cheatham, Kia Javanmardian, and Hamid Samandari | McKinsey Quarterly With great power comes great responsibility. Organizations can mitigate the risks of applying artificial intelligence and advanced analytics by embracing three principles. Artificial intelligence (AI) is proving to be a double-edged sword. While this can be said of most new technologies, both sides of the AI blade are far sharper, […]