Archives

Risk tolerance for tactical and strategic planning

We discuss risk tolerance for tactical and strategic planning using an excerpt from a case study in our forthcoming book. The title is Convergent Leadership – Divergent Exposures and the case study is in Chapter 16. In the book we include three complete case studies with different level of information and requirement. Setting of the case study covering risk tolerance for tactical and strategic planning Kryptonite corp. has three plants shipping bulk material through a wharf called Terminal reached by railroad…

Read More

Tolerable risk thresholds

Tolerable risk thresholds, aka risk tolerance are always project and owner-specific. They indicate the level of risk which has been deemed acceptable for a specific project or operation. Furthermore, tolerable risk thresholds and appetite for risk is quite different for various key stakeholders, for instance: Mine owner, Regulatory Bodies, Adjacent Communities, etc.   So how can one manage the sometimes divergent tolerable risk thresholds between stakeholders? Additionally, a topic that comes regularly in the mining world is diverging risk tolerance among…

Read More

Demands for Zero Risk

Oftentimes when explaining risks to Management or the public “Demands for Zero Risk” objection arise. Repeatedly, stakeholders may point out that any “non zero” risk is unacceptable. Indeed, in the aftermath of any recent accident (Samarco, Cadia, Mount Polley) public opinion, regulators, law enforcement agencies and the media vehemently embrace that vision. However, the first reaction should be to declare that goal  as not realistic as any endeavor has intrinsic risks. Indeed, we are exposed to hazards and resulting risks…

Read More

Risk tolerance thresholds

Everyone has a different pain threshold and likewise, everyone has different risk tolerance thresholds. We use the plural because each one of us has various thresholds, for example, a perceived one and a financial one. Your risk and risk tolerance thresholds made simple Anyone of us, every-day decides to undertake some activities and consciously or unconsciously assumes risks we consider acceptable/tolerable or sometimes intolerable.Think about various activities: Hunting, fishing, driving a heavy vehicle, and finally cooking in one’s house. They…

Read More

Opportunity, experience, learning from mistakes and regrets

Opportunity, experience, learning from mistakes and regrets come up in many conversations. Examples generally start with a IF: I had known what I know now. It would be possible to start over again. A second chance would be possible. It seems like we really firmly believe we can learn from prior mistakes. We can absorb lesson learned and profit from them. However, there is abundant evidence that is not the case. We tend to repeat patterns, even if we know they…

Read More

Ten specific questions Riskope/ORE effectively and elegantly solve for you and your company

We are delighted to show below ten specific questions Riskope/ORE effectively and elegantly solve for you and your company. ORE is the methodology Riskope has developed over two decades of continuous improvements while working for Fortune 500, international organizations, private groups and governments. Ten specific questions Riskope/ORE effectively and elegantly solve for you and your company. For the ease of reading we have grouped the ten specific questions Riskope/ORE effectively and elegantly solve for you and your company in four…

Read More

Aspects of Risk Tolerance, Manageable vs. Unmanageable Risks in Relation to Critical Decisions, Perpetuity Projects, Public Opposition

Today we discuss Aspects of Risk Tolerance, Manageable vs. Unmanageable Risks in Relation to Critical Decisions, Perpetuity Projects, Public Opposition. Aspects of Risk Tolerance, Manageable vs. Unmanageable Risks in Relation to Critical Decisions, Perpetuity Projects, Public Opposition Riskope is writing a paper following this Abstract. In 2014, we will find a suitable Conference in Canada where to publish it. The paper builds on case studies from prior papers. For example Can We Stop Misrepresenting Reality to the Public and  Factual and…

Read More

What Fukushima (2010) nuclear accident, the Twin Towers (9/11) terror attack, deadly traffic accidents and Aquila earthquake (Italy), hurricanes have in common?

In this blogpost we attempt an update of Whitman’s and ANCOLD tolerance/acceptability curves. These link casualties from man-made or natural catastrophes, large dams failures to a “tolerable” annual probability. The attempt shows evidence for a G8-wide societal acceptability which has only slightly changed since the original studies by Whitman..   We have already discussed many times how well-balanced and sustainable decisions can only be taken if risks are compared to properly defined risk tolerance /acceptability criteria. Comparison of various risk…

Read More

Archive

Hosted and powered by WR London.