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Shocks are inevitable. A dynamic risk management plan can help companies stay competitive.

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Getting ahead of business risk

In the news

•

Betting on the weather. In the first half of 2023, insurance companies covered more than $40 billion in losses caused by natural disasters, according to a global reinsurer. As many traditional insurers withdraw from high-risk areas, parametric insurance, or policies that reimburse clients when specific conditions (such as weather events) are met, is gaining ground. Using data from third parties, parametric insurance can be used for excessive heat or cold, earthquakes, and other events. The payouts also tend to be faster than with traditional insurers and can be used to cover lost wages or cleanup efforts. [WSJ]

•

CISO succession planning. A recent report shows that roughly four in ten companies do not have a plan for chief information security officer (CISO) succession. Given the institutional knowledge many CISOs hold and the increasing risk of cybersecurity threats, not planning ahead can result in serious risk for companies, as the next person in line may not be fully qualified for the role. Developing internal candidates can be difficult to do without taking them away from their core job responsibilities, and external recruiting can be expensive and time consuming. [CNBC]

“According to CROs, banks in the current environment are especially exposed to accelerating market dynamics, climate change, and cybercrime.”

On McKinsey.com

•

Internal and external threats. Business risks can come from outside a company—like cyberattacks, inflation, and geopolitics—or from within—like an information leak or a missed opportunity. While leaders and organizations may have different comfort levels with risk, creating a dynamic and flexible approach to risk management could help organizations stay competitive when shocks occur, according to McKinsey Global Institute director Olivia White and coauthors. Risk controls encompass the ways in which companies can identify threats, limit or eliminate them, and prevent or reduce loss .

•

Understanding uncertainty. Preparing for risks like a pandemic, climate change, or supply chain disruption can be daunting for any organization. But strategies like scenario planning can help executives and their teams think through hypotheticals and fill existing gaps in their capabilities. One benefit of scenarios is that by developing a range of possible outcomes, each backed with a sequence of events, it is possible to expand leaders’ thinking. Explore this edition of McKinsey Explainers for three components to a successful risk management strategy.

Ready your defenses against risk

— Edited by Gwyn Herbein, editor, Atlanta

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by "McKinsey On Point" <publishing@email.mckinsey.com> - 12:11 - 13 Sep 2023

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Shocks are inevitable. A dynamic risk management plan can help companies stay competitive.

Getting ahead of business risk

In the news

“According to CROs, banks in the current environment are especially exposed to accelerating market dynamics, climate change, and cybercrime.”

On McKinsey.com

Archives

in

info@learn.odoo.com

Keep Your Transport Vehicles Safe and Efficient with Tire Pressure Monitoring Systems

ตรวจสอบ 7 ความท้าทายและตัวอย่างสำหรับศูนย์ข้อมูล Edge!

Shocks are inevitable. A dynamic risk management plan can help companies stay competitive.

﻿Getting ahead of business risk

In the news

“According to CROs, banks in the current environment are especially exposed to accelerating market dynamics, climate change, and cybercrime.”

On McKinsey.com

Getting ahead of business risk