Our most recent columns explored the risk management approach of Paul O’Neill and Stanley McChrystal and their creation of institutional learning systems. Let’s now validate this approach through the lens of history and determine why building organizational capacity for institutional learning is essential to the future of risk management.
Part I of this article explained how over the last seven years, researchers at The Ohio State University have been exploring the concept of enterprise resilience, i.e. how companies can prosper in the face of turbulent change by being able to recognize, understand, and compensate for vulnerabilities. Part II of this article explains the SCRAM (supply chain resilience assessment and management) framework, which enables a business to identify and prioritize the supply chain vulnerabilities it faces, as well as the capabilities it should strengthen to offset those vulnerabilities.
Our most recent columns have explored the risk management approach of Paul O’Neill and Stanley McChrystal and their creation of institutional learning systems. This column focuses on their leadership model and why an evolution in c-suite leadership is critical to the future of risk management.
Our recent columns have shared the risk management approach of Paul O’Neill and his conviction that to turn the company around, Alcoa had to create a learning-based culture that would embrace the pursuit of goals set at the level of known possibility. We now explore how retired U.S. Army General Stanley McChrystal used the same approach to defeat Al Qaeda and the broader implications for the field of risk management.
One of the best parts of serving as executive director of The Risk Institute at The Ohio State University Fisher College of Business is helping to bridge the gap between academia and corporate practitioners.
Up to now, our risk management primer has consisted of four parts: (i) providing a way to think about risk management, (ii) introducing the concept of corporate longevity as a key metric, (iii) explaining the need for business leaders to become “chief learners” that serve within an institutional learning system, and (iv) how an institutional learning system is integral to risk management. Parts V and VI explore how former Alcoa CEO Paul O’Neill used a risk management strategy focused on workplace safety to create an institutional learning system and a culture of habitual excellence that resulted in record prosperity.
Parts I and II of our conversation focused on the evolution and risk management issues inherent in M&A activity and the middle market. Part III concludes with a discussion of risk management issues that may affect middle market companies in the future.
Mark Siwik conducts this conversation with Russ Warren, a national expert on the evolution of the M&A market and middle market businesses. Part I contains reflections gleaned from working more than 40 years in mergers and acquisitions with a focus on the middle market.
Here we define an institutional learning system that explains why risk management systems are needed to work better in a world of uncertainty.
Our Conversations section features in-depth interviews with leading figures in risk management. Mark Siwik, founder of SandRun Risk, conducts this conversation with Don Dinero, an expert on the Training Within Industry (TWI) program, which is arguably the most successful program ever created to increase workplace productivity and mitigate operational and hazard risk.
Lori 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.