Business as usual definition in risk assessment, as defined in our day-to-day practice, is an unchanging state of affairs. That is, despite the occurrence of non-divergent hazards of any kind (man-made, natural). An example of business as usual and non divergent hazard For instance, the variability of any parameter as considered and specified in the design of a system is “business as usual”. Therefore that variability does not represent a hazard. For example, the variation of the oil price of…
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Business startups success show stoppers and tolerable risks This is a follow up on last week’s post showing how ORE can evaluate business startups success, show stoppers and tolerable risks. Indeed, ORE showed quantitatively where the a priori: “party-breakers”, “underlying assumptions” as well as “key success elements” were in each case. Thus it allows to avoid those pitfalls. The success and failure probabilities were in good agreement with a Kaufmann Foundation study. For the portfolio analysis we have now to look at…
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Startups investors and money lenders asked us two questions. Based on our risk assessment and management experience, is ORE capable of: predicting business startups 3 financing rounds success? finding ways to reduce the risks from inception? We derived a subset from ORE (Optimum Risk Estimates, ©Riskope) and deployed it on 7 companies. The companies are at different maturity stages. They are active in different spaces in three countries (Canada, Italy, Switzerland), namely: Company Country Space Startup #1 Canada Networking hardware…
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A few phrases from the paper named Risk-management lessons from the volcanic ash cloud are copied below in italics, then commented: …Conventional thinking about risk management holds that risks are mainly local and routine—that it is possible to list all the negative events that could happen, determine their probability based on past experience… Risk-management lessons from the volcanic ash cloud Two common wrong behaviors are indicated in the phrase above: 1) risks to be included in a risk assessment are not…
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We will discuss today why Force Majeure clauses in contracts should be optimized to reduce costs and litigation potential. Force Majeure clauses in contracts should be optimized to reduce costs and litigation potential. Indeed, any time spent in the aftermath of a mishap “discussing” if the event was Force Majeure, negligence or had other causes severely impacts operations. In addition it can significantly increase the costs of consequences. Thus the need to optimize the Force Majeure formulation. If it was…
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