Can we stop misrepresenting reality to the public?
May 8th, 2013
We gave a presentation in Toronto, at the CIM 2013 conference.
The main points made are the following:
- You cannot manage (your) capital if you do not understand risks.
- You will not be able to make proper decisions if you do not understand risks.
- You will not be allowed to operate if people do not believe, trust and understand you and your risks.
- You will miss opportunities and blindly expose yourself to risks if you do not understand risks.
- If you understand your risks you can go and see your bankers with better indicators than the sad, obsolete and misleading NPV.
- With better understanding of risks you can beat insurance denial problems and come up with win-win solutions either with your insurer, or with you key contractual counterparts.
Sadly, the recent collapse of the nine-storey Rana Plaza factory in Dhaka, Bangladesh, one of the worse industrial disaster in the world since the 1984 Bhopal gas explosion, confirms the above.
Tagged with: Acceptability, Analysis, assessment, Bangladesh, Bhopal, crises, decision, development, economic, Financial, management, NPV, operational, Optimum Risk Estimates, ORE, projects, Rana Plaza factory, risk, Risk Management, success, sustainability, tolerability
Category: Consequences, Hazard, Optimum Risk Estimates, Probabilities, Probability Impact Graphs, Risk analysis, Risk management, Tolerability/Acceptability
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