 Risk is a seemingly simple word that confounds most organizations when it comes to achieving strategic outcomes. We prefer the word uncertainty. Learning about uncertainty starts with developing an understanding of historical efforts to address the concept of probability. Doc Hall returns to our newsletter with a thought-provoking three-part essay on the risk of thinking we know the truth of things. Part I challenges us to make the effort to be life-long learners. This article series addresses the concept of risk – a seemingly simple word that confounds most organizations when it comes to strategy and tactics. What is risk? Getting to a clear and consistently understood definition of risk is a fundamental of good business leadership.  Confusion abounds within the field of risk management. Helping us make better sense of the subject is a new book authored by Rick Nason. Read a review on Rethinking Reputational Risk by our guest columnist by Felix Kloman.Our recent columns explored the architecture and science behind institutional learning systems that help organizations manage risk – i.e., learn to thrive. Chesley Sullenberger’s story is a fitting capstone to this section, reminding us that learning to thrive is much more than a tale of heroes and miracles.   Join the conversation as Mark Siwik, founder of SandRun Risk, conducts this interview series with Dr. Robert Hall, Professor Emeritus of Operations Management, Kelley School of Business, Indiana University. Our recent columns explored how Paul O’Neill and Stanley McChrystal used institutional learning systems to better manage risk and optimize performance. Emerging science confirms their approach and the need to develop more leaders who can see the future of risk management. An article in the Wall Street Journal, “Buffett Re-Examines Reinsurance”, by Anupreeta Das and Leslie Scism (Friday, July 3, 2015), discussed Warren Buffett’s favorite way of making money – through insurance. Many commercial contracts contain risk-transfer provisions, including indemnification and insurance requirements. They should not be treated as boilerplate provisions and should be carefully reviewed to ensure that the language in the contract is clear, concise and does not contradict the language in the insurance policies. |
AuthorsLori Siwik and Mark Siwik are the founders of SandRun Risk. They apply the principles of vertical leadership and lean six sigma to the discipline of risk management. From time to time they share their blog with guest authors who write about important risk management principles. Categories
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