resilience. Do I need to be resilient everywhere, or can I be robust, resistant and antifragile in some areas? Only in my key and critical functions is resilience required.
what has been done for years and has led us to the situation we are currently in. Go beyond many guides and standards which were used as guiding
people and sectors clinging to their comfort zones, fine-tuning what already exists with the aim of not rocking the boat. But events in Europe (as elsewhere) are evolving
Opportunity processes Slowly, risk managers are seeing that the opportunity process is a little different to the risk process and challenges ideas behind risk appetite, identification and mapping. These time-based elements mean that the heat map, which has no timeline, is not sufficient. Even Monte Carlo simulations are inadequate to consider the feedback loop of the actions I am proposing. Is agent-based modelling the way forwards? Can I use an extended or modified fishbone diagram to picture my universe? Risk managers need to apply the same rules to their own functions as they do to customers and stakeholders. Challenge
The traditional way of categorising the risk universe is not effective principles and do what is right. Take a white piece of paper and capture the key elements needed for the future purpose of advising and supporting decision-making such that all stakeholders are adequately served. Give support to the future vision development, guide strategic awareness and ensure actions are timely, adequate, resilient and sustainable. When we look to projections of what the future holds, we see
so fast, they are accelerating and being amplified in so many directions, that the risk manager, who is supposed to look into the future, will be reacting and responding. It is time to rethink what will make risk management fit for purpose in the future. Adrian Clements is president and chief risk officer at AT-IPIC.
Turning the dial on climate change BY SEBASTIAN RATH
The second of our reflections argues that risk managers have a decisive role to play in climate change risk management and mitigation. But the time to act is now Enterprise Risk
W
hat could be a more poignant reflection on COP26 than inviting ourselves to a personal stocktake before November next year, when Egypt hosts COP27 in Sharm El Sheikh? COP26 reminded the world again that the UN’s annual climate change conference is a global and democratic risk management
forum, shaping national, sector and corporate commitments and compromises. The summit truly is a fine example of data-driven discourse and the art of diplomacy, and the challenges to deliver sufficient impact. While effective at fostering 32
