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Archive for October, 2013|Monthly archive page

Risk learning and ERM go hand in hand

In Uncategorized on October 8, 2013 at 8:52 pm

It is well said by no other than Warren Buffet: Risk comes from not knowing what you’re doing.” 

Enterprise Risk Management is a holistic view to risk management. It involves top management, board of directors in making strategy within the risk appetite of the organization which leads to fulfilment of organizational objective. The definition looks complex but it is based on very simple concepts. Last week during my discussion with Chief Risk Officer (CRO) of an Indian Insurance company, we identified two way of performing a simple task – one way of doing this is to learn from trial and error and repetition of same task, many times which ultimately leads to give us feeling of being expert and experienced and the other approach of doing is to get knowledge about technical aspect of simple task and learn from other experience and start doing it. Same applies to personnel involved in risk identification, assessment, evaluation and risk control. It can be argued that doing same mistakes over a long period of time without realizing what is wrong and right, does not change solvency position of the organization in case of adverse situations like catastrophic event, deep recessions.

Risk learning is an emerging concept and not discussed yet within the academicians and practitioners very often. A good example of this is maintaining a loss register internally within the organisation and for the industry as a whole and share within the group for the betterment. Do we really use it in our working? When we install a new machine or involve new process – do we first spend some time on gaining technical knowledge and experience through risk learning or just start working on it. It can be argued what is good and valuable for the organization in such case? What will be the benefit of spending huge money in gaining expertise vs. cost of risk?

It can be interpreted that Risk learning is way to learn from critical feedback in existing system and learning from error made by others when we apply it in a new system. This new perspective ‘An improvement in ERM program through Risk Learning’ can make revolution in existing system and improve performance to greater degree.

Comments welcome.

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Why entrepreneurs are moving beyond the Next Big Thing to solving the Next Big Problem

In Uncategorized on October 7, 2013 at 12:28 pm

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Buy it on Amazon

A new book, Planet Entrepreneur, published to coincide with the upcoming World Entrepreneurship Forum in Singapore has highlighted the need for entrepreneurs to work with policy makers and world leaders to create a ‘New Humanism’.

From energy to education, social needs to social media, a new generation of global entrepreneurs have the opportunity to fundamentally change the planet for the better.

Whether it is climate change, pollution, poverty, economic stagnation, or underemployment – the world needs innovative, workable solutions more than ever.

Through real-life examples, Planet Entrepreneur explains where the entrepreneurial revolution is headed and explains how anyone can become more entrepreneurial.

Written by members of the World Entrepreneurship Forum, the first global think tank fully dedicated to entrepreneurship, each chapter focuses on different aspects of the challenges and opportunities currently being encountered and solved by entrepreneurs, including:

• The cutting-edge ideas and real-world skills that today’s best entrepreneurs use most often

• Using technology to solve real-world problems

• Social entrepreneurship and the end of charity

• Empowering women and minority entrepreneurs

• The global rise of the self-employed entrepreneur

• Opportunities for improving housing, food, sanitation, among the world’s most needy people

• Making the marriage of business and the environment work for all

• Social media as a launching pad for your ideas

Planet Entrepreneur also outlines how entrepreneurial ‘eco-systems’ can be developed by young and old to provide sustainable growth to benefit the whole planet. From Detroit to Delhi, the teenage tech-whizz and rebel retiree can be part of an entrepreneurial eco-system that helps to provide wealth and social-justice for all.

Planet Entrepreneur explains how the world’s best entrepreneurs are making a profit or meeting a pressing social need, and how you can too. Today’s problems are too urgent and the implications for our future too dire to ignore.

We are now all living on Planet Entrepreneur.

Planet Entrepreneur

Wiley Editions

http://www.world-entrepreneurship-forum.com/NEXTBIGTHING

Buy it on Amazon

Twitter: #ePlanet @WEntFr