What makes a risk acceptable? Good practices tell us to map all risks and determine their levels of criticality, probability of occurrence and the estimated level of control resulting from the implementation of mitigation measures. If a minor criticality — which frequently occurs — seems like an acceptable risk, it may become quite difficult to identify an extremely critical incident with a low probability of occurrence. How many of you had mapped massive supply chain interruptions due to a global pandemic in your 2019 risk management review?
This is where risk management professionals enter the game and sharing of best practices come into play. Most management teams will have on their radar, business interruption, skilled workforce shortages or changes in legislation. But where do they rank cyber incidents or customer credit risks in case of major disruption for instance?
In this issue of This Week in Consulting, we explore Risk Management. What are the global risks that we all face and at what horizon as well as how companies are approaching risk management and implementing risk governance? We look at the three lines of the defence model and the role of the board to turn some risks into opportunities.
Enjoy the read. Feel free to comment. Would love to hear your views.
Chairman Consulting Quest
This week’s must read
In This Week’s Must Read is a comprehensive report published by the World Economic Forum in collaboration with Marsh McLennan. It examines post-Covid -19 global divergence, causing disparities to widen and societal fractures to aggravate.
In this post-Covid-19 world, businesses cannot afford to underestimate the importance of managing risks while making investment decisions, as that can backfire in times of economic downturn. Against this backdrop, World Economic Forum published its Global Risks Report 2022, in collaboration with Marsh McLennan. This report examines some of the most critical issues, feared to aggravate the pandemic’s cascading impacts, making it more difficult for the world to handle these newly emerged threats.
This week’s media
Diseases and natural disasters have become rampant with frequent cyber crimes add salt to injuries. Under this circumstance, enterprise risk management has become a hot topic of discussion in the business world.
This video discusses business risks, causes and impacts and how to manage them, various aspects and benefits of enterprise risk management (ERM) among others.
In 2022, effective risk management is on the top of board members’ agenda, according to EY. Based on the findings of a recent survey, a research team pointed out that despite the criticality of risk management, many board members lack confidence in their organization’s capabilities. Then, there is hardly any consensus on what effective risk management might look like. This article digs into three hallmarks of effective risk management and offers some ideas on what boards can do to implement a foolproof plan.
Thanks to the Covid-19 pandemic, risk management at financial institutions faced unprecedented challenges back in 2020. The subsequent measures, taken to combat the spread of the virus, in turn, resulted in a sharp economic downturn and far-reaching social impacts. How has risk management responded and how has it evolved? This insightful piece offers a gist of findings from the latest edition of Deloitte’s Global risk management survey, conducted from March to September 2020 and was completed by 57 financial institutions around the world.
What are the top corporate risks for the upcoming months in 2022 and beyond? Based on the insight of more than 2,650 risk management experts from 89 countries and territories, the Allianz Risk Barometer has published its annual report. According to this 11th Allianz survey, Cyber, business interruption, and natural disasters are the top three business risks globally in 2022. Read this article for a closer look at these risks and the ways they can impact businesses negatively.
This week’s consulting news selection
Boston Consulting Group (BCG) and SAP forge a partnership to help companies transform themselves into sustainable enterprises. This collaboration between two market leaders in their respective fields is expected to facilitate organizations’ journey to zero waste and zero emissions. |
FTI Consulting recently elected Nicole S. Jones and Stephen C. Robinson as Independent Directors to its board. While the former brings a wealth of legal expertise to the table, the latter is expected to contribute to the client advisory area based on his long experience across both the public and private sectors. |
Keeping with its long-term association with Rugby, Capgemini recently announced its partnership with World Rugby as a “Global Partner of the Women in Rugby” program. This partnership is expected to contribute to the development of the sport, its diversity and its inclusiveness, and women’s leadership throughout the sport. |
The one-year-long partnership between OC&C and Australian Strategy Partners has jus been culminated in the full integration of ASP into OC&C, effective from 1st May 2022. This move is expected to help OC&C to bring its global expertise to clients based in Australia and strengthen its positions in Australasia. |
Laurent is the Chairman and Co-founder of Consulting Quest. Focused on greater value creation, and being thoroughly familiar with Consulting, Laurent has sourced and sold millions of dollars worth of Consulting over the course of his career. Prior to joining Consulting Quest, Laurent was Executive Vice President Oil and Gas at Solvay and Senior Partner Transformation at Oliver Wyman.