on Risk & Safety

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

In an earlier post [1] we looked whether ‘plausible deniability’ was now a dead strategy in the face of enterprise risk management (ERM) and the likely impact of the US SEC (Securities and Exchange Commission) guidance [2] regarding disclosure obligations relating to operational and cybersecurity risks and cyber incidents. The SEC noted that “a number of disclosure requirements may impose an obligation on registrants to disclose such risks and incidents. [Read more…]

Guest Post by Geary Sikich and Joop Remme (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Introduction

In this article we posit three questions. The first question is: “Is it a social responsibility of companies that they undertake a comprehensive risk assessment?” The second question: “Does the notion of conscience and its application to the generation and use of risk information and information in general, create an obligation for the organization to disclose the results of the comprehensive risk assessment?” The third question “How do the people in the organization communicate the information from the comprehensive risk assessment to stakeholders and yet preserve security and protect the organization?” [Read more…]

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

The idea of supply chain risk management has been around for about 10 years. It is only in the last 5 years, that it has become popular. We are still at the early stage of supply chain risk management adoption and deployment.

In terms of total dollar amount, external suppliers provide a significant portion of a manufacturer’s product. For U.S. firms, 50% to 80% or more of the final price of a product can be the cost of purchased goods.  In Japan, it can be even higher.

For these reasons, any supply disruption can kill a supply chain.  As a result, supply chain risk management is now critical to a company’s competitiveness. [Read more…]

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

If you want senior management to pay attention give them something that challenges their focus – and understand that their focus is not on how many computers you have or RTO, RPO stats. It is on business survivability – will we be in business tomorrow given the issues that we face today. [Read more…]

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

Heightened Awareness or Reactive, Backwards Looking?

From financial crises to energy catastrophes to earthquakes and threats of terrorism, we hear a lot about events that challenge our ability to identify and manage risk.

Unfortunately, some of the things that emerge from many of these events are reactive regulatory rules and requirements. [Read more…]

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

We hear a lot about things that are being called “Black Swans” today thanks to Nassim Taleb and his extremely successful book, “The Black Swan: The Impact of the Highly Improbable,” now in its second edition. I have written several articles centering on the “Black Swan” phenomenon; defending, clarifying and analyzing the nature of “Black Swan” events. And, I am finding that wildly improbable events are becoming perfectly routine events. [Read more…]