A 6-Part Tool for Ranking and Assessing Risks

CARVER is a system for assessing and ranking threats and opportunities. Developed during World War II, CARVER (then one letter shorter and known as CARVE) can be both offensive and defensive, meaning it can be used for identifying your competitors’ weaknesses and for internal auditing. In addition, many security experts consider it the definitive assessment tool for protecting critical assets.

Since it draws on both qualitative … [ Read more ]

How to Use Thought Experiments to De-Risk Your Startup

In the early days of building a company, it’s hard to step back and think about the bigger picture when there are always so many fires to fight or opportunities to chase down. That’s a shame, because looking at your business from a 50,000-foot view often reveals areas of misplaced focus or resource misallocation.
One technique that can break through the bubble of always being in … [ Read more ]

Lower Your Startup Risk with this Template

After watching other founders – including myself – flail about, pivoting their way through the darkness, I’ve become obsessed with being more systematic and disciplined about entrepreneurship. So I decided to take Leo Polovets’ lead and standardize risk management into a single spreadsheet, which you can copy, download, or remix.

A Comprehensive Approach to Managing Social Media Risk and Compliance

Traditional risk management policies and procedures were not designed for, quite literally, minute-by-minute monitoring of social media chatter to identify brand, strategy, compliance, legal and market risks.

Those risks are considerable. Financial institutions have had to shut down social media forums due to unanticipated negative feedback; the stock markets have been buffeted by fraudulent social network postings; businesses have had to change or rescind strategies … [ Read more ]

Are You Prepared for a Corporate Crisis?

No one can predict when disaster will strike—but knowing what to expect if it does will buy precious time.

Nonfinancial Risk Today: Getting Risk and the Business Aligned

Risk managers may argue that the basic principles of Risk and Control Management (R&CM) are well established, and indeed enshrined, in industry standards. The concepts may indeed be broadly known, but they are applied in such a scattered fashion that they are not fit for purpose.

The resourcing and costs of the R&CM approach should be aligned with the company’s structure, business model, and risk profile. … [ Read more ]

Preventing Social Media Armageddon

The accessibility and fluidity of social media leaves organisations open to significant risks. But there are countermeasures organisations can take to prevent reputation disaster.

Pragmatic Risk Management in a Tightly-Coupled World

Globalization has created new opportunities and new threats. As sourcing from around the world made supply chains longer and more complex, the volatility inherent in production significantly increased. The number of supply chain members and the interactions among them has grown, exacerbating the lack of transparency in the operating environment. Company executives have increased profitability through ever-shorter times-to-market and product life-cycles, business processes improvement, just-in-sequence … [ Read more ]

The Art of Risk Management

Risk management isn’t just a matter of complex financial models and formal risk-management systems. It is an essential value-creating activity that should inform the strategic debate at every level of the organization. Here are ten basic principles that should govern “the art of risk management.”

From Risk to Resilience: Using Analytics and Visualization to Reduce Supply Chain Vulnerability

Complex supply chains require sophisticated, connected tools to monitor risks, predict disruptions, and support rapid recovery as part of an overall resilience strategy. For leading companies, this line of thinking has led to an increase in adoption of advanced tools grounded in analytics and visualization.

Risk Test: 7 Answers You Need to Know

Ensuring that a company’s risks are effectively identified, evaluated, and managed is among the most important responsibilities of a board of directors. The science of risk management continues to evolve. Lessons learned from past failures are being leveraged to ensure that a company’s risk management is built on the right foundation and evolving in the right direction. By asking the following seven questions today, directors … [ Read more ]

Managing Risks in the Supply Chain: Reaching New Standards

Supply chain risk is an increasingly common topic and for good reason: Almost any disruption—weather event, supply failure, technology glitch, financial fiasco—can affect a company’s ability to manage its supply chain. Accenture discusses the many forms of risk, surveys risk management technologies and introduces a five-step risk management program.

Overcoming a Bias Against Risk

Risk-averse midlevel managers making routine investment decisions can shift an entire company’s risk profile. An organization-wide stance toward risk can help.

Curbing Risks in Complicated Projects

Some types of risk pose a peskier problem than others for the success of complex projects, but the outcome of large-scale initiatives ultimately rests on how capably managers and their subordinates can detect and respond to unforeseen emergencies. Changing requirements for the project, shifting customer needs, and communication breakdowns are the most frequent and damaging types of risk.

Achieving Enterprise Stability Based on Economic Capital

In a highly competitive environment, companies can focus too much attention on maximizing profits in the short term, while neglecting basic principles of the risk management process. Many bankruptcies, including those of big and successful companies listed on the New York Stock Exchange (NYSE), have stemmed from a failure to plan for the downside of risk. Enterprise stability and a company’s chance for survival can … [ Read more ]

The Lesson of Lost Value

A new study finds that underestimating strategic risk is the number one cause of shareholder value destruction. But it doesn’t have to be.

Engaging the Board in Risk-Adjusted Decision Making

Numerous companies’ attempts to engage directors in risk management have failed either because those attempts themselves were not properly conceived or directors – and the companies – lacked specific tools to meaningfully involve directors. These authors advance three highly practical and effective tools that will enable boards to make that meaningful contribution to the risk management discussion.

How to Prepare for a Black Swan

Disrupter analysis can help assess the risks of future catastrophic events.

The People Side of Risk Intelligence

Almost all companies today maintain a dedicated team of professionals to manage talent, and many also employ at least a few full-time professionals to manage risk because both are major agenda items for boards and senior executives. But few organizations systematically encourage their talent and risk managers to work together collaboratively to pursue broader goals, specifically enhancing enterprise value.

We believe talent and risk are intimately … [ Read more ]