Voluntary Payments Defense – Not a Viable Defense to Defeat Coverage When Insurance Carriers Refuse to Make a Coverage Determination
Grant Purdy joins us for a three-part interview. Part I focuses on Grant’s background and experience from working more than 40 years on practical applications of risk management, including the improvement of decision making.
Black swans - unlikely, unpredictable, and catastrophic events - justify investment in ERM but there is even greater justification with the arrival of black elephants - looming disasters that are visible but no one wants to address or deal with them.
Phil Renaud concludes this article series with a discussion of the need to build a better bridge between the HR function and risk management.
Black swans - unlikely, unexpected events that change paradigms - justify investment in ERM but now there is even greater justification with the advent of black elephants - looming disasters that are visible but no one wants to address or deal with them. History teaches us the importance of building resilient organizations comprised of people that are self-confident, believe in each other, and feel a sense of responsibility to control their collective fate for the better.
In the age of pandemics, cyber crime, and other black elephant type risks, getting senior leadership to increase their involvement and commitment to ensure that ERM becomes integrated into all organizational activities is more important than ever. We start this article series by looking at the difference that good leadership makes in determining whether their organizations build the necessary infrastructure to pursue opportunities and absorb the shocks of doing business in an increasingly intertwined and interdependent world.
Part I of this article provided an overview of the results of the 2019 risk management survey conducted by The Risk Institute at The Ohio State University’s Fisher College of Business. Part II of this article focuses on the role of leadership and the integration of risk management throughout the enterprise, including day-to-day decision-making.
The State of Enterprise Risk Management in the USA (Part I): Building Internal Risk Management Capacity Through Outsourcing
Part I of this article by Phil Renaud shares leading research from more than 500 risk management practitioners across a broad cross-section of industries.
Boards have broad duties that they owe to their company including corporate governance and overseeing risk management.
Boards are responsible for ensuring that the company has established risk management programs appropriate for the material risks facing the company and for overseeing how company management implements those programs. Boards have recognized their responsibility for overseeing the management of credit risk, liquidity risk, and operational risk. Addressing cybersecurity risks should be included as one of those responsibilities. Boards that ignore, or minimize, the importance of cybersecurity risks are not doing their job. As many IT professionals advise, it’s not a matter of “if” a company will face a cybersecurity breach, but “when.”
There has been a 20.5% increase in data breaches this year compared to last year according to a recent report from the Identity Theft Resource Center. The business sector, with 33.5% of the breaches, represents approximately 60% of the compromised records. In light of the recent data breaches reported by Ebay, Target, Adobe and Wyndham, among others, corporate boards are making cyber threats a board-level issue. Boards should evaluate their company’s cyber risks and ask:
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.