challenges - Blog - Global Risk Community2024-03-19T13:34:50Zhttps://globalriskcommunity.com/profiles/blogs/feed/tag/challengesAre You Able to Effectively Respond to VUCA (Volatile, Uncertain, Complex, Ambiguous) Challenges?https://globalriskcommunity.com/profiles/blogs/are-you-able-to-effectively-respond-to-vuca-volatile-uncertain2020-10-10T07:27:10.000Z2020-10-10T07:27:10.000ZMark Bridgeshttps://globalriskcommunity.com/members/MarkBridges<div><p><a href="{{#staticFileLink}}8028340460,original{{/staticFileLink}}" target="_blank"><img class="align-right" src="{{#staticFileLink}}8028340460,original{{/staticFileLink}}" alt="8028340460?profile=original" width="350" /></a>VUCA relates to threats that people and enterprises often encounter. The acronym reflects the constant, dramatically-transforming, and unpredictable world. The concept originated in 1987, based on the theories of Warren Bennis and Burt Nanus. The term was first used by U.S. Army War College to describe the volatile, uncertain, complex, and ambiguous general conditions globally.</p><p>The acronym found traction after 2002, when it was considered an emerging idea to be discussed among the strategic leadership. The term <a href="https://flevy.com/browse/flevypro/vuca-volatile-uncertain-complex-ambiguous-5270">VUCA</a> stands for:</p><ol><li><strong>Volatility</strong></li><li><strong>Uncertainty</strong></li><li><strong>Complexity</strong></li><li><strong>Ambiguity</strong></li></ol><p><a href="https://flevy.com/browse/flevypro/vuca-volatile-uncertain-complex-ambiguous-5270"><img class="aligncenter size-full wp-image-7450" src="https://flevy.com/blog/wp-content/uploads/2020/09/VUCA.png" alt="" width="1002" height="752" /></a></p><p>The 4 VUCA challenges reflect the unpredictable forces of change that affect organizations, necessitating new skills, approaches, and behaviors to mitigate them. The 4 elements of VUCA relate to how people view the situations where they make decisions, formulate plans, respond to challenges, cultivate change, and solve issues.</p><p>VUCA is a practical code for anticipation, understanding, preparedness, and intervention in the wake of uncertainty and confusion. One of the biggest challenges of managing in a VUCA world involves team members who resist change. Simply training the leaders on key capabilities isn’t adequate to avoid failures resulting due to not handling the VUCA issues properly. What differentiates sound <a href="https://flevy.com/browse/stream/leadership">Leadership</a> from mediocre management is the leaders’ ability to ascertain key elements that prevent them from adopting resilience and flexibility.</p><p>In this age of disruption, Volatility, Uncertainty, Complexity, and Ambiguity are widespread. These elements will be more prevalent across industries and enterprises in future, and if not managed properly can sap an organization’s and its employees’ strengths.</p><p>Let’s discuss these VUCA elements individually.</p><h3><strong>Volatility</strong></h3><p>The Volatility element of VUCA talks about the distinct situational categorization of people due to their specific traits or their reactions in particular situations. People react differently in specific settings due to social cues. Volatility describes the influence of situations on stereotypes and social categorization, which is the reason why people perceive others differently.</p><p>Two factors connect people to their social identities: Normative fit and Comparative Fit. Normative fit is the degree that a person relates to the stereotypes and norms that others associate with their specific identity. For example, a Hispanic woman cleaning a house does not get gender stereotypes from others in this situation, but when she eats an enchilada ethnic stereotypes emerge and the gender is forgotten. Comparative fit relates to specific traits of a person that are prominent in certain states compared to others, which are obvious as others around a person do not have those traits. For example, a woman in a room full of men stands out, whereas all the men are grouped together.</p><h3><strong>Uncertainty</strong></h3><p>The Uncertainty element of VUCA pertains to the unpredictability of information in events, which often occurs in the intention to indicate correlation between events. Uncertainty is often counteracted by using social categorization (stereotypes), as people tend to engage in social categorization when there isn’t much data about an event.</p><p>For instance, when there isn’t enough information to clearly appreciate someone's gender—as in case of an author’s name when discussing written information—majority of people presume the author is a male. Social categorization also occurs in case of a race, when people stereotype a certain race to a particular trait. For example, basketball players are most of the time assumed as black people while golfers are expected to be white.</p><h3><strong>Complex</strong><strong>ity</strong></h3><p>The Complexity element of VUCA relates to the inter-relatedness of several factors in a system. Complexities due to interactions and dependencies within groups and categories bring unexpected results even in a controlled environment. There are certain identities in individuals that are more dominant than others. Other people distinguish these identities, make their assumptions about them, and create stereotypes. However, complexity in a person’s personality makes it difficult to socially categorize that individual accurately.</p><p>Different categories trigger in the mind of the observer, creating positive and negative perception. It is that positive perception that the observer is more open-minded despite stereotypes and think past the target’s dominant social trait. Complexities in social identities cause some identities to lessen the noticeability of other identities, making the targets unnoticeable and overlooked.</p><p>Interested in learning more about the elements of a VUCA environment, its mitigation, and Robert Johansen’s leadership framework “VUCA Counterweight” or “VUCA PRIME?” You can download <a href="https://flevy.com/browse/flevypro/vuca-volatile-uncertain-complex-ambiguous-5270">an editable PowerPoint on <strong>VUCA (Volatility, Uncertainty, Complexity, and Ambiguity)</strong> here</a><u> </u>on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><h3><strong>Are you a Management Consultant?</strong></h3><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>Digital Education Is Taking The Concept Of Online Education To New Horizonshttps://globalriskcommunity.com/profiles/blogs/digital-education-is-taking-the-concept-of-online-education-to2020-07-23T06:46:26.000Z2020-07-23T06:46:26.000ZKBV Researchhttps://globalriskcommunity.com/members/KBVResearch<div><p>When things like ticket booking, watching TV shows, ordering food are being digital, education is still lagging in terms of digital education. The number of Internet users is growing increasingly with an increase in the number of smartphones. It provided a good chance to provide education online.</p><p></p><p><a href="{{#staticFileLink}}8028334060,original{{/staticFileLink}}" target="_blank"><img src="{{#staticFileLink}}8028334060,original{{/staticFileLink}}" class="align-center" alt="8028334060?profile=original" /></a></p><p></p><p>Online education is slowly and steadily becoming popular with the interest of working professionals to learn new things, technology. <a href="https://www.kbvresearch.com/digital-education-market/">Digital education</a> is an academic practice that ultimately helps students. This makes use of a wide variety of technology-enhanced education strategies. This includes blended learning, flipped learning, personalized learning, and other approaches that rely on digital tools to a minor or large degree.</p><p></p><h2><strong>What is digital education?</strong></h2><p>Digital education is a creative use of interactive tools and technologies during teaching and learning and is also referred to as technology-enhanced learning (TEL) or e-learning. Exploring the use of new technology offers educators the opportunity to develop engaging learning opportunities in the courses they teach, which may take the form of blended or fully online courses and programs.</p><p></p><p>Digital education encourages learners to access value-added education in remote areas, giving everyone equal opportunities for education. Students living in Tier 2 and Tier 3 cities no longer need to move to urban cities for higher or specialized education, as digital learning has affected their homes and transformed their homes into teaching space. Cutting-edge know-how is enlightening scholars sitting in the comfort of their homes, while they only need an internet connection to make the most of the amenities. Anyone can easily acquire online, regardless of their physical and demographic changes.</p><p></p><h2><strong>Digital education vs. traditional education</strong></h2><p>Digital education is increasingly replacing traditional education methods on a daily basis. Given how quickly classrooms are evolving, it's best to forget the approaches you may recall when you were in school and start thinking about newer teaching and learning techniques focused on digital education tools and technologies. The use of digital learning in classrooms can range from the basic use of tablets instead of paper to the use of sophisticated software programs and equipment rather than a simple pen. Here's how digital learning is a step up from traditional education methods.</p><p></p><h2><strong>Digital education is making students self-motivated and more accountable</strong></h2><p>Students using digital education tools and technology are more engaged in the process and more interested in expanding their knowledge base; they may not even understand that they are actively learning while they learn by engaging methods such as peer education, teamwork, problem-solving, reverse coaching, idea maps, gaming, staging, role-playing, and storytelling.</p><p></p><p></p><p>Since digital learning is far more interactive and memorable than bulky textbooks or one-sided lectures, it provides a better context, a greater sense of understanding, and more engaging activities than traditional education methods. It makes it easier for students to connect with learning materials. Furthermore, they also offer a more interesting and engaging way to digest information. This is reflected in their retention and test scores. Also, as students can track their progress, motivation and accountability can be improved.</p><p></p><h2><strong>Digital education tools and technology is rapidly increasing information sharing</strong></h2><p>Over recent years, the switch from print to digital has had an impact on how we learn. Much like the printing press did six centuries ago; this transition is changing formal education and growing learning opportunities. Digital learning not only allows students to access more and more content, but it also ensures that the knowledge in question is customized to their personal needs. The most valuable benefit of digital learning is the ability to help each student learn at the best possible pace and path.</p><p></p><p>Digital learning tools and technologies enable educators to share information quickly with other educators in real-time. The explosion of free and open content and tools has created an ecosystem for exchanging the economy. By accepting digital technology and interactive learning, classrooms around the country and across the globe can not only communicate with one another and share insights, but can also improve study, experience, and communication skills. Practice also allows educators to enjoy a level playing field. Schools will save money by providing equal access to educational materials to expensive private schools.</p><p></p><h2><strong>Traditional education methods have to be replaced</strong></h2><p>Traditional lectures can still exist along with new-age learning tools and technology, but instructional materials will be provided as a supplement to classroom practices and moved online for students to refer beyond the classroom. Classroom time is often used to discuss the curriculum, engage in team activities, and complete class projects. Students also have the opportunity to pace their learning and even study using a remote learning platform if they want to do so.</p><p></p><p>By helping children think beyond their typical learning patterns, digital learning inspires creativity and makes children feel a sense of accomplishment that encourages further education. Digital learning tools and technology fill gaps where traditional classroom teaching is stagnating behind. In addition, some of the efficiencies that such tools bring are simply unparalleled by traditional learning techniques. Digital education is an innovative means to minimize costs, optimize capital, and improve both visibility and influence for students and educators alike.</p><p></p><h2><strong>Advantages of digital education</strong></h2><p>Traditional classroom-based education is becoming obsolete. Consider examples of online or on-demand streaming services such as Netflix, Amazon Prime, etc. It provides us with a personalized and on-demand television experience. It eliminates location, system, and timing constraints. Television programs, athletic events are broadcast in a personalized way. Similarly, the delivery of education or the learning process must be personalized.</p><p></p><p>The traditional classroom-based lecture process may not benefit each person. Every individual has some strengths and weaknesses, and the speed of understanding a particular topic is different for everybody. It also depends on particular students who are involved in a particular topic or subject. Personalized learning using technology is one of the patterns that will dominate over the coming year.</p><p></p><p>Digital education facilitates continuous feedback from content-integrated evaluation, neuro-games, simulations, and interactive learning. When students can track their progress, motivation and ownership can be enhanced. Cloud platforms make it easy for teachers to communicate and manage their students regardless of where they are located.</p><p></p><h2><strong>Barriers to digital education</strong></h2><p>Digital education at the moment is not fully controlled by the government. Most of the time, students or practitioners are looking to complete a course from a certified/Govt-approved educational institution. It can help them get a job after finishing the course. Online course providers offer courses that are autonomous, private. These cases certainly help individuals, but their acceptability or scale to the mass market is limited due to a non-regulated area.</p><p></p><p>Inequality is rife in our society in all its variations. Moreover, given the costs of modern technology, not every student could afford it. That is why, if the overall digital transition of the education sector is to succeed, classes need to provide students with all the requisite tools and materials in a universal manner. Conversely, teachers do not have to extend to the individual student level, but rather can limit it to the front-of-the-classroom tools.</p><p></p><h2><strong>To sum up</strong></h2><p>The digital education market is rapidly transforming the methods of education altogether. Education is however lagging in terms of technology adoption. Education is something that will bring a positive difference to the world. Education technology will continue to remove the current barriers to providing quality education around the globe.</p><p></p><p><strong>Free Valuable Insights:</strong> <a href="https://www.kbvresearch.com/news/digital-education-market/">Global Digital Education Market to reach a market size of USD 48.4 billion by 2026</a></p><p></p><p>Adaptability to vocational education, executive management courses is on the higher side, as many working professionals choose courses that they can easily learn; sign up for in-office or at home. Higher education is now gradually entering the digital age. Online certifications, value-added certifications are becoming increasingly popular with college students. Most of these courses are intended to improve the employability of students.</p></div>When Physical Office Becomes Passe, Are We Ready for Virtual Teams?https://globalriskcommunity.com/profiles/blogs/hen-physical-office-becomes-passe-are-we-ready-for-virtual-teams2020-03-18T06:30:00.000Z2020-03-18T06:30:00.000ZJoseph Robinsonhttps://globalriskcommunity.com/members/JosephRobinson808<div><blockquote><p>Richard Branson, British business and philanthropist once said: “One day, offices will be a thing of the past.”<a href="http://flevy.com/blog/wp-content/uploads/2020/01/pic-1-Virtual-Teams-Challenges-Benefits-200x300.jpeg" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2020/01/pic-1-Virtual-Teams-Challenges-Benefits-200x300.jpeg?profile=RESIZE_710x" width="200" class="align-right" alt="pic-1-Virtual-Teams-Challenges-Benefits-200x300.jpeg?profile=RESIZE_710x" /></a></p></blockquote><p>While organizations still need to travel to reach their physical offices, the rapid changes in the world are requiring businesses to form <a href="https://flevy.com/browse/flevypro/virtual-teams-challenges-and-benefits-4013">Virtual Teams</a>. A Virtual Team refers to a group of individuals who work together from different geographic locations and rely on communication technology such as email, voice conferencing services, fax, etc.</p><p>Virtual Teams work well for an organization and is effective even from a communication perspective. In fact, it is known to complement well the <a href="https://flevy.com/lean-management">Lean Management</a> approach used by organizations. Studies from previous years have shown that well-managed, widely spread, Virtual Teams have been outperforming those that share office space. In fact, it has shown that using Virtual Teams can improve employee productivity by 45%.</p><p>In today’s highly competitive global economy, to be able to work smarter, organizations must be able to leverage the manifold benefits of a remote workforce. Likewise, organizations must also be able to manage challenges that come with working with Virtual Teams.</p><h3>The <a href="https://flevy.com/browse/flevypro/virtual-teams-challenges-and-benefits-4013">4 Core Challenges of Going Virtual</a></h3><p>More organizations are opting to work with virtual teams. Virtual teams may have their benefits but it also has its challenges. Being able to manage these challenges will enable organizations to seize the benefits of remote workers.</p><p><a href="https://flevy.com/browse/flevypro/virtual-teams-challenges-and-benefits-4013" target="_blank"><img src="http://flevy.com/blog/wp-content/uploads/2020/01/pic-2-Virtual-Teams-Challenges-and-Benefits.png?profile=RESIZE_710x" width="750" class="align-full" alt="pic-2-Virtual-Teams-Challenges-and-Benefits.png?profile=RESIZE_710x" /></a><br /> There are 4 core challenges that organizations face when working with Virtual Teams. Let us take a look at the 2 core challenges.</p><ol><li><strong>Virtual Communication</strong>. Having different time zones can be a challenge. This can lead to layers of complexity to the logistics of everyday communication. When time zones do not match, it can lead to less and less information being transmitted and can cause miscommunication. When working in a different time zone, there is a tendency to exchange information using email or instant messaging. But these may not be enough as it cannot convey as much meaning compared to vocal tone, facial expression, and physical gestures.</li></ol><ol start="2"><li><strong>Virtual Project Management</strong>. When working with virtual teams, the business must have a proper system and people in place. Virtual <a href="https://flevy.com/business-toolkit/project-management-pm">Project Management</a> may cause some confusion and even delays. While digital tools are in place to facilitate remote project management and collaboration, it can be difficult at times to tell what each person is contributing. In fact, organizations need to put up a system to track whether the members of the virtual team are doing their required tasks.</li></ol><p>In this digital era, Virtual Teams are becoming the new face of business operation and aligning itself with <a href="https://flevy.com/digital-transformation">Digital Transformation</a>. This is a global reality that businesses must accept. However, working with Virtual Teams brings a lot of challenges not only in Project Management and <a href="https://flevy.com/browse/flevypro/virtual-teams-challenges-and-benefits-4013">Virtual Communication</a> but also in Talent Development and Technology Support. Talent Development and Technology Support are two other core challenges that can make an impact on the Virtual Team. How it is managed will define the success of your Virtual Team.</p><p>In hindsight, Virtual Teams can also bring so many benefits. Hence, it is not surprising that despite the challenges, a lot of businesses still prefer to work with Virtual Teams.</p><p>One core benefit is increased access to top talent. The world has become a global market for expertise and talents. Businesses can extend their reach to other countries in their search for needed expertise. In fact, working with virtual teams will open opportunities for businesses to work with experts in various fields with various experiences. Being able to employ the best and the brightest is more than enough for businesses to continue working with Virtual Teams and conquering challenges. Businesses just need to have appropriate support programs to give Virtual Teams a home-field advantage.</p><p>Interested in gaining more understanding of <a href="https://flevy.com/browse/flevypro/virtual-teams-challenges-and-benefits-4013">the challenges & benefits of Virtual Teams</a>? You can learn more and download an <a href="https://flevy.com/browse/flevypro/virtual-teams-challenges-and-benefits-4013">editable PowerPoint about <strong>Virtual Teams: Challenges & Benefits</strong> here</a> on the <a href="https://flevy.com/browse">Flevy documents marketplace</a>.</p><p><strong>Are you a management consultant?</strong></p><p>You can download this and hundreds of other <a href="http://flevy.com/pro/library/frameworks">consulting frameworks</a> and <a href="http://flevy.com/pro/library/consulting">consulting training guides</a> from the <a href="http://flevy.com/pro/library">FlevyPro library</a>.</p></div>What are the 10 Biggest Global Challenges?https://globalriskcommunity.com/profiles/blogs/what-are-the-10-biggest-global-challenges2016-12-30T03:17:23.000Z2016-12-30T03:17:23.000ZEnrique Raul Suarezhttps://globalriskcommunity.com/members/EnriqueRaulSuarez<div><p></p><p><a href="{{#staticFileLink}}8028251490,original{{/staticFileLink}}"><img width="444" src="{{#staticFileLink}}8028251490,original{{/staticFileLink}}" class="align-center" alt="8028251490?profile=original" /></a></p><p style="text-align:center;"><span class="font-size-4"><strong>What are the 10 Biggest Global Challenges?</strong></span></p><p style="text-align:center;"></p><p style="text-align:center;"><span class="font-size-3">Written by:</span></p><p style="text-align:center;"></p><p style="text-align:center;"><span class="font-size-3"><a href="http://www.weforum.org/agenda/authors/rosamond-hutt" target="_blank">Rosamond Hutt</a></span></p><p style="text-align:center;"><span class="font-size-3">Thursday 21 January 2016</span></p><p style="text-align:center;"><span class="font-size-3">Source: World Economic Forum</span></p><p style="text-align:center;"></p><p><span class="font-size-3">Whether it’s turning promises on climate change into action, rebuilding trust in the financial system, or connecting the world to the internet, the World Economic Forum has singled out 10 key global challenges that, if they are to be addressed, require cooperation from the public and private sectors.</span></p><p><span class="font-size-3">The link below is a guide to the 10 challenges, and why they matter to the world.</span></p><p></p><p><span class="font-size-3"><a href="https://www.weforum.org/agenda/2016/01/what-are-the-10-biggest-global-challenges" target="_blank">Guide to the Ten Challenges</a></span></p><p></p><p></p></div>Learn how Liberty Mutual is finding new ways to automate and operationalisehttps://globalriskcommunity.com/profiles/blogs/learn-how-liberty-mutual-is-finding-new-ways-to-automate-and2016-09-26T16:02:10.000Z2016-09-26T16:02:10.000ZFrancesca Lehninghttps://globalriskcommunity.com/members/FrancescaLehning<div><p>The Insurance industry is facing extensive operational challenges with disruptive market and consumer changes leaving insurers with no choice: innovate or die.</p><p> As a result, many are undertaking a complete top-to-bottom transformation. One such U.S insurer is <a href="http://www.operationalexcellenceinsurance.com/why-transformation-is-a-top-to-bottom-initiative?utm_source=global%20risk%20community&utm_medium=mediapartner&utm_campaign=24190.003-external-blog&utm_term=content&utm_content=text&mac=24190.003_global_risk_bl&utm_source=global%20risk%20community&utm_medium=mediapartner&utm_campaign=24190.003-external-blog&utm_term=content1&utm_content=text&mac=24190.003_global_risk_blog&disc=24190.003_global_risk_blog" target="_blank">Liberty Mutual, who are exploring new ways to automate and operationalize to transform their processes.</a></p><p>PEX network spoke to the Director or Special Projects – Process and Technology, Sidharth Grover, to find out what he and his team are looking to gain from attending the <a href="http://www.operationalexcellenceinsurance.com/agenda-mc?utm_source=global%20risk%20community&utm_medium=mediapartner&utm_campaign=24190.003-external-blog&utm_term=agenda&utm_content=text&mac=24190.003_global_risk_blog&disc=24190.003_global_risk_blog" target="_blank">Operational Excellence in Insurance</a> event in Hartford Connecticut this October 17-19, 2016.</p><p><a href="http://www.operationalexcellenceinsurance.com/why-transformation-is-a-top-to-bottom-initiative?utm_source=global%20risk%20community&utm_medium=mediapartner&utm_campaign=24190.003-external-blog&utm_term=content&utm_content=text&mac=24190.003_global_risk_bl&utm_source=global%20risk%20community&utm_medium=mediapartner&utm_campaign=24190.003-external-blog&utm_term=content1&utm_content=text&mac=24190.003_global_risk_blog&disc=24190.003_global_risk_blog" target="_blank">Download the full interview</a></p><p><a href="https://register.iqpc.com/srspricing.aspx?eventid=1002644&utm_source=global%20risk%20community&utm_medium=mediapartner&utm_campaign=24190.003-external-blog&utm_term=register&utm_content=text&mac=24190.003_global_risk_blog&disc=24190.003_global_risk_blog" target="_blank">You too can bring your team!</a> Bringing your team will ensure that you get maximum value from benchmarking with and learning your North American peers. Not only is learning as a team the easiest way to empower and motivate, it is also a great way of upskilling your entire department, fast!</p><p><a href="https://register.iqpc.com/srspricing.aspx?eventid=1002644&utm_source=global%20risk%20community&utm_medium=mediapartner&utm_campaign=24190.003-external-blog&utm_term=register&utm_content=text&mac=24190.003_global_risk_blog&disc=24190.003_global_risk_blog" target="_blank">Bring your team and Save up to 30%</a></p><p>Team of 3 - 10% on any standard package</p><p>Team of 4 - 15% on any standard package</p><p>Team of 5 - 30% on any standard package</p></div>Risk Management Challenges for the Insurance Industryhttps://globalriskcommunity.com/profiles/blogs/risk-management-challenges-for-the-insurance-industry2016-06-21T16:13:14.000Z2016-06-21T16:13:14.000ZSteven Minskyhttps://globalriskcommunity.com/members/StevenMinsky<div><p><a href="{{#staticFileLink}}8028248258,original{{/staticFileLink}}"><img src="{{#staticFileLink}}8028248258,original{{/staticFileLink}}" width="287" class="align-left" alt="8028248258?profile=original" /></a>Risk is a double-edged sword for insurance companies. On one hand, customers buy coverage because their businesses face a variety of risks. On the other hand, risk management challenges for the insurance industry are numerous. These include risks like “underwriting, credit, market, operational, liquidity risks, etc.,” according to the <span style="text-decoration:underline;"><a href="http://www.naic.org/cipr_topics/topic_own_risk_solvency_assessment.htm">National Association of Insurance Commissioners (NAIC)</a></span>.</p><p>Insurance companies operate under the increased scrutiny of a tightening regulatory environment. About a year ago, the NAIC expanded its required assessment framework, called the Own Risk and Solvency Assessment (ORSA). ORSA is defined as “an internal process undertaken by an insurer or insurance group to assess the adequacy of its risk management.”</p><p>ORSA goes beyond the SEC disclosure requirements that have universal applicability. It <span style="text-decoration:underline;"><a href="http://www.naic.org/cipr_topics/topic_own_risk_solvency_assessment.htm">requires firms to</a></span> “analyze all reasonably foreseeable and relevant material risks…that could have an impact on an insurer’s ability to meet its policyholder obligations.”</p><p>Next, we’ll take a closer look at some specific concerns, as well as risk management challenges and <span style="text-decoration:underline;"><a href="http://www.logicmanager.com/erm-software/operational-risk-management-software/insurance/">best practices for the insurance industry</a></span>.</p><p></p><h4><span class="font-size-4"><strong>ORSA Implementation</strong></span></h4><p></p><p>The minimum threshold for an ORSA program requires yearly analysis of <em>all </em>material risks. Companies must prove risk assessments have been undertaken at the organizational level where the risk activity takes place, not just at the senior management level. Organizations ensure this occurs by setting a “tone from the top.”</p><p>Take a more detailed look at ORSA and how it affects insurance organizations by reading our <span style="text-decoration:underline;"><a href="http://www.logicmanager.com/erm-software/2013/09/10/rmorsa-risk-culture-and-governance/">five-part blog series</a></span>. To determine how well your organization’s risk management program meets ORSA requirements, use the <span style="text-decoration:underline;"><a href="http://www.rims.org/rmm">complimentary RIMS Risk Maturity Model</a></span>, recommended by the NAIC and Institute of Internal Auditors recommends. The Risk Maturity Model will confirm what aspects meet ORSA requirements, and also identify areas needing most improvement. The companion audit guide (also complimentary) then details best practices for making those improvements.</p><p><span style="text-decoration:underline;"><a href="http://www.logicmanager.com/erm-software/plugins/risk-management-orsa-compliance/">ORSA compliance</a></span> alone can be a major risk management challenge without an ERM solution that consolidates information. When any manager can evaluate risks in his or her own sphere of responsibility, however, it’s very easy to “roll” assessments up to the next level. Reporting, whether for annual ORSA assessments or a board meeting, becomes a simple matter of presenting information already existing in the system.</p><p></p><p><strong><em>For more information, visit our page on </em></strong><span style="text-decoration:underline;"><a href="http://www.logicmanager.com/erm-software/operational-risk-management-software/insurance/"><strong><em>ERM solutions for the insurance industry</em></strong></a></span>.<strong><em> To learn more about ORSA compliance, download our free eBook,</em></strong> <span style="text-decoration:underline;"><a href="http://www.logicmanager.com/orsa-compliance-ebook/"><strong>ORSA Compliance: 5 Steps You Need to Take in 2016</strong></a></span><strong><em>.</em></strong></p><p></p></div>The Trouble with Quick Wins: How to Reduce Risk of Predictive Analytics Project Failurehttps://globalriskcommunity.com/profiles/blogs/the-trouble-with-quick-wins-how-to-reduce-risk-of-predictive2016-01-08T18:35:56.000Z2016-01-08T18:35:56.000ZGreta Robertshttps://globalriskcommunity.com/members/GretaRoberts<div><p><span class="font-size-4">Greta Roberts, CEO Talent Analytics, Corp.</span></p><p></p><p><a href="{{#staticFileLink}}8028243885,original{{/staticFileLink}}"><img src="{{#staticFileLink}}8028243885,original{{/staticFileLink}}" width="250" class="align-left" alt="8028243885?profile=original" /></a>When beginning a new predictive analytics project, the client often mentions the importance of a “quick win”. It makes sense to think about delivering fast results, in a limited area, that excites important stakeholders and gains support and funding for more predictive projects. A great goal.</p><p>It’s the implementation of the quick win in a predictive project that can be difficult. <em>There are at least 2 challenges with using a traditional quick win approach to predictive analytics projects.</em></p><p><strong>Challenge #1: Predicting Something That Doesn’t Get Stakeholders Excited</strong></p><p>Almost daily I hear of another predictive project that was limited in scope and allowed people to dip their toe in the predictive water and get a “quick win”. The problem was the results of the project predicted something stakeholders didn’t care about or couldn’t take action on.</p><p>Examples include the following:</p><ul><li>Predicting which Colleges and Universities yield the highest performers.</li></ul><p>The problem with this quick win is that results of this prediction can lead to questions around – are they also the most expensive schools? Does only a certain economic class of person attend these schools.</p><p>Using these predictions opens up discussions of economic discrimination, making HR and executives nervous. They often decide to ignore their newfound ability to predict performance, they don’t implement the prediction and the project doesn’t advance the case for more predictive projects.</p><ul><li>Predicting a “Middle Measure” Like Engagement</li></ul><p>The problem with this quick win? While HR thought the project was a winner, project results got no excitement from business stakeholders and didn’t advance the goal of gaining additional support and resources for more predictive projects.</p><p>Executives have seen little or no correlation between engagement and actual business results at their own firm. Imagine trying to sell the VP of Sales on predicting engagement of their sales reps. At the end of the day their employees aren’t hired to be engaged, they are hired to do their job and sell.</p><p><strong>Challenge #2. Quick Wins Shouldn’t Mean Tiny Data</strong></p><p>In non-analytics projects you’re able to do a pilot with a small amount of people and data. You can focus on a small piece, a sample, something light, less expensive, less risky and less time consuming before you fully commit.</p><p>An example would be piloting a piece of software. You could install it for a small number of people and gain their feedback before making a broader commitment. Pilots work great for small sample sizes and testing things with just a few people.</p><p>When you think about predictive analytics projects, though you want a “quick win”, you still need to find a project with enough data to conduct a great predictive experiment. To be predictive your models need to find patterns, and patterns require enough data. It doesn’t make sense to do a predictive analytics pilot on tiny a bucket of data.</p><p>Rather than reducing the amount of data, we’d rather see you reduce the scope of the prediction.</p><p>An example: Instead of doing a predictive analytics pilot project to predict flight risk for all jobs in the Chicago office, maybe it would yield better results to keep the scope small and targeted by predicting flight risk for a single role that has a lot of people in it.</p><p>Ask your data scientist for their guidance on how to frame your “quick win” project to keep the project scope smaller, while giving the data scientist a reasonable amount of data to optimize your chance for success.</p><p><strong>For your predictive projects, “quick” isn’t enough of a win.</strong></p><p>Instead, you want a quick, implementable and exciting win that people care about.</p><p>The only way to get a quick, exciting win is to start with a project that predicts something that either saves or makes money for your company. Find a project that solves an existing business problem. Remember what predicting does for your organization. Accurate predictions do a better job at decision making so that you have better end results. <em>End results are the only thing that will get people excited and will be implemented.</em></p><p>Think of banks that try to “predict” whether or not to give you a mortgage. They want to do a better job of extending credit only to people that can pay their mortgages. They’re not doing this to predict who will be engaged as a customer.</p><p>All your predictive projects should be ones where you are saving or making money. Do a project where you can demonstrate that your model worked and saved money on an important measure. Often this is a line of business problem, not an HR problem.</p><p>Results are the <em>only</em> kind of win that will get business stakeholders excited and move your efforts forward.</p><p><em>Greta Roberts is the CEO & co-founder of <a href="http://www.talentanalytics.com" target="_blank">Talent Analytics, Corp.</a>, Chair of <a title="Predictive Analytics World for Workforce" href="http://www.predictiveanalyticsworld.com/workforce/2016/" target="_blank">Predictive Analytics World for Workforce</a> and Faculty member of the International Institute for Analytics. Follow her on twitter <a title="twitter @gretaroberts" href="http://www.twitter.com/gretaroberts" target="_blank">@gretaroberts</a>.</em></p></div>Challenges to the Small and Medium Size Enterprises (SMEs) - Lessons from the Delta Modelhttps://globalriskcommunity.com/profiles/blogs/challenges-to-the-small-and-medium-size-enterprises-smes-lessons2015-03-17T05:00:00.000Z2015-03-17T05:00:00.000ZEnrique Raul Suarezhttps://globalriskcommunity.com/members/EnriqueRaulSuarez<div><p style="text-align:center;"><a href="{{#staticFileLink}}8028229895,original{{/staticFileLink}}"></a><img width="750" class="align-center" src="{{#staticFileLink}}8028229465,original{{/staticFileLink}}" alt="8028229465?profile=original" /></p><p align="left" style="text-align:left;">Most of what I have discussed about the Delta Model in previous presentations in this forum applies without much adaptation to any kind of organization. After all, every firm, regardless of its nature and specific circumstances, has customers and competencies – the two pillars of the Delta Model. However, there are two types of organizations that, because of their importance and singularity, deserve special attention. They are the small- and medium-sized enterprises (SMEs) and the not-for-profit organizations (NFPs). I will devote in this presentation to the analysis of these institutions, examining what lessons can be derived if we approach them from the perspective of the Delta Model.</p><p style="text-align:left;"></p><p style="text-align:left;"><span class="font-size-3">The Importance of SMEs</span></p><p align="left">There is no uniform and widely accepted definition of what constitutes an SME. The standards vary from country to country. Typically, SMEs are defined by an upper limit in the headcount and/or the sales revenues. An agreement is emerging, particularly within the United States, to classify a company as small if it has less than 50 employees and medium if the headcount is below 250. This gives you a sense of what kind of organization I am addressing here.</p><p align="left"></p><p align="left">Regardless of its definition, we know that the overall impact of SMEs is overwhelmingly large. Uniformly, 95–99% of the total companies in any country are SMEs; they employ between 40% and 60% of the workers; and they contribute between 40% and 50% of the GDP. In addition, they play a central role as a leading source of innovation and creativity. For these considerations, we feel the SMEs deserve special treatment.</p><p align="left"></p><p align="left"><span class="font-size-3">The Challenges of Managing SMEs</span></p><p align="left">We believe that the Delta Model can guide us in defining a successful strategy for SMEs by looking at how an SME can adopt each of the strategic positions represented in the Triangle. It may seem odd that most of the examples that I have used when I teach the Delta Model are large, successful companies. I do this for two reasons. First, at one point, all companies were small, and it is interesting to understand how our chosen examples were able to make the successful transition from very embryonic companies to the large organizations they became. Second, we want to use companies that are universally well known to greatly simplify the communication process.</p><p align="left"></p><p align="left">You can download the PowerPoint presentation in the bellow link:</p><p align="left"></p><p align="left"><a href="{{#staticFileLink}}8028230263,original{{/staticFileLink}}">DeltaModel_Challenges%20SMEs_20.pdf</a></p><p align="left"></p><p align="left">If you need to implement the Delta Model in your organization, please contact me at: <a href="mailto:suarezenrique@yahoo.com">suarezenrique@yahoo.com</a> and I will send you the full Delta Model Executive Training Program so that your company can discover new sources of profitability in a networked economy.</p><p align="left"></p><p align="left"></p><p></p></div>Top Challenges in Risk - The Results Are Inhttps://globalriskcommunity.com/profiles/blogs/top-challenges-in-risk-the-results-are-in2013-09-30T04:05:24.000Z2013-09-30T04:05:24.000ZBryan Whitefieldhttps://globalriskcommunity.com/members/BryanWhitefield<div><p>I have been running a survey and with more than 100 completed I am getting an interesting picture of the challenges my readership is facing. Here are the results and my interpretation of what they mean.</p><p>First of all, I should answer the question “What does the profile of respondents look like?” Put simply, my readership base and those that responded are typical of the risk profession. You are a mix of senior risk professionals in larger organisations, risk advisors who work for senior risk professionals or are embedded in business units, consultants or managers who have a part-time responsibility for risk including CFOs, COOs, GMs, Legal Counsel and a host of other managers of strategy, governance, safety, internal audit and many more.</p><p><a target="_blank" href="images/stories/pdf/Risk%20eViews%20Vol%2034%20Customer%20Needs%20Survey%20Results.pdf?inf_contact_key=462d2c863f88648df1b4bdf9e233b903d9a62aa428e884bfc01c0da08a594451">Please Download RMP's Customer Needs Survey Results Here.</a></p><p>My Interpretation:</p><p><strong>1. Evolving –</strong> Almost 50% of respondents indicated the need to elevate their programs towards better practice. This tells us risk management continues to evolve. Given the breadth and depth of debate in LinkedIn groups on various elements of better practice, standards and how to make it happen, this comes as no surprise.</p><p><strong>2. Engagement</strong> – Engaging middle management and front-line staff ranks significantly higher than engaging the C-Suite. This could mean one of two things. Either senior management is now more engaged than ever before or many of the respondents simply don’t have access to the C-Suite as they are operating much lower in the organisation’s hierarchy. I believe both are happening.</p><p><strong>3. Communication</strong> – Perhaps what is also at work is either a lack of confidence or a lack of opportunity to develop the skills required to engage senior management as evidenced by the one in five who indicated they have trouble articulating their vision and/or getting involved at Board level.</p><p><strong>4. Analytics</strong> – One in four is challenged to improve risk assessments while only one in eight is seeking better quantification of risk in risk assessments. I suspect there is still complacency when it comes to tackling our psychological biases when assessing risk and quantification is one way of addressing them.</p><p><strong>5. Accountability</strong> – This was perhaps the greatest surprise to me. Only one in ten identified a need to demonstrate their program was better practice while less than one in twenty felt a need to demonstrate a ROI for the organisation’s investment in them and the program they run or are building. Unfortunately this makes sense as risk departments have been some of the hardest hit in cut backs seen by organisations over the past 12 months. My message to risk professionals: <strong>“If you don’t take ownership of demonstrating your worth then someone else will determine your budget!”</strong></p><p>I don’t pretend that these results are representative of the risk industry globally or even locally, however, hopefully they provide you with some interesting insights.</p><p></p><p><a href="http://www.rmpartners.com.au">www.rmpartners.com.au</a></p></div>