As stated earlier ORE2_Tailings™ allows to define in a clear, transparent, and reproducible way which risks are tolerable or intolerable. Among the intolerable risks ORE2_Tailings™ allows to define which risks are tactical and which ones are strategic. We discussed tactical and strategic planning for dam portfolio using ORE2_Tailings™ in https://www.riskope.com/2021/06/30/tactical-and-strategic-planning-for-dam-portfolio-using-ore2_tailings/. In our reports we show that risks of the considered portfolio belong to a three families as follows: tolerable, meaning they are below the risk tolerance of the client. These…
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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…
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Tactical and strategic planning to mitigate divergent events is one of the themes of our next book. The term divergent does not yet appear in our glossary, as we are preparing its fourth edition. Stay tuned for the announcement of its publication. In short, hazards or exposures become divergent when they part from long term averages and “usual extremes”, both in terms of frequencies and/or magnitude. For example, a hundred-year rain event that occurs three times in a short interval…
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Many clients are dealing with a conundrum at the cross between codes, resilience and climate change. Solving it is paramount for tactical and strategic planning purposes. Code compliance is not synonymous with resilience When facing good-old hazards that are becoming more frequent and more intense, perhaps due to climate change, it is easy to realize that code compliance becomes meaningless. Indeed, codes work for the “good old way”, both in terms of resilience and frequency. A code compliant solution may…
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We are learning that structural integrity of hydro dams is also becoming an issue. Thus, similarly to tailings dams, we need a strategic operational and tactical planning for tailings hydro dams! Karl Terzaghi, American Society of Civil Engineers, “Terzaghi Lectures, 1974-1982,” American Society of Civil Engineers (1986) ISBN 0-87262-532-X. proposed that a dam rating system should provide ALL of the following: A logical framework for rating the relative safety of a dam Allow for the use of judgment and experience…
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We recently discussed with a client Antifragile resilient solutions for tactical and strategic planning. The theme is interesting and warrants publication this week as it raises a number of interesting issues. We use Rx to indicate our client’s Remarks, and Ax to indicate the our related Answers. Fragile – Robust – Antifragile systems R1) I think there is value in characterizing systems into the three groupings that Taleb presented. That is, Fragile – Robust – Antifragile. Because it gets engineering…
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The pelican beak analogy shows enhanced planning benefits. As you probably know it by now, we have expressed skepticism toward using buzzwords like black swan and others, for numerous reasons. That does not stop us, however, to come out today with another avian analogy. The pelican analogy displays in a simplified manner the capital required by an entity, i.e. a project, startup, basically any endeavor. It displays as the straight orange line. The capital produced in the meantime, i.e. the purple…
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Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Generally, strategic planning deals, on the whole business, rather than just an isolated unit, with at least one of following three key questions: “What do we do?” “For whom do we do it?” “How do we excel?” For example, the first and third questions are those that motivate an acquisition. Acquisitions are thus strategic choices. Typically strategic…
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