Riskope’s participation to the 2014 International Symposium on Business and Management

In this blogpost we discuss Riskope’s participation to the 2014 International Symposium on Business and Management.

Riskope’s participation to the 2014 International Symposium on Business and Management

We decided Riskope’s participation to the 2014 International Symposium on Business and Management in Nagoya last winter. We strongly believe that our proprietary Optimum Risk Estimates (ORE) methodology has to be brought to the attention of an increasing number of industries and decision-makers world-wide.

ORE allows to enhance governance and leadership. It transforms threats in competitive opportunities by having a clearer understanding of the risk landscape of a corporation.

During the conference Franco Oboni, the CEO of Riskope chaired a session. In addition he presented a paper and became a member of the Editorial Board of the International Journal of Business and Information.

Riskope’s paper reviewed a number of well-known nuclear, dam and tunnel accidents worldwide. It compared their “a priori” probability of occurrence and casualties to historic risk tolerance thresholds. It was demonstrated that historic societal risk tolerance thresholds are still valid.

We have observed how societies around the world have tolerated (or not) major accidents like Fukushima, Mont Blanc Tunnel and many dams failures. Overcoming societal tolerance generally results in outcry, boycotts and legal actions.

Difference between societal and corporate risk tolerance

The paper then showed the difference between societal and corporate tolerance thresholds. It illustrated how, thanks to a transparent definition of tolerance one can split risk portfolios into classes. These are a)tolerable, b)intolerable, but manageable, c) intolerable and unmanageable classes.

Unmanageable risks are those that require a strategic shift. One can deal with manageable risks by applying tactical measures like, for example, recent 2013-2014 GM, Nissan, Toyota car recalls.

Through the paper we stressed how one should foster communication and transparency in risk assessments. In particular we stressed how common practices (Probability-Impact Graphs, FMEA, etc.) can be misleading and actually constitute a liability for their users.

The presentation was followed by a Q&A session. During the session delegates made comments on the recent MH370 tragedy. That ibcluded poor communication and poor risk assessment practices in various countries.

Riskope’s consultants are available to provide any further information on ORE and its deployment worldwide.

Tagged with: FMEA, Fukushima, GM recalls, MH370, Mont Blanc Tunnel, Nissan recalls, Probability Impact Graphs, tolerance thresholds, Toyota recalls.

Category: Consequences, Crisis management, Optimum Risk Estimates, Probability Impact Graphs, Risk analysis, Risk management, Tolerance/Acceptability