Balanced Risk Strategies, Ltd. - Martin Pergler
  • Home
  • About Martin Pergler
  • Delivery models
  • Articles
  • Why balance?
  • Old blog

News and thoughts. Read at your own risk!

The Brexit win: a litmus test for risk management

24/6/2016

 
How good really is your company's risk management? The Brexit situation provides a good litmus test.

The Leave win was surprising, but with polls running close to 50-50 in recent weeks, and information markets pegging Brexit likelihood over 20%, a company with prudent and effective strategic risk management cannot say they were "shocked", as in this article from today's WSJ​. 

I know two companies who anticipated the possibility of Brexit in their last scenario planning or strategic risk assessment exercises. One was a UK-based company, the other a North American one with low direct UK exposure, but correctly fearing a Brexit win would roil financial markets much more broadly. Did your company do something similar? Are you now fleshing out a couple of different possible Brexit evolution narratives going forward and what they might mean for your company, including your value chain partners, in the next few years? Or did your company just assume and trust it "wouldn't happen" and you're now scrambling to think it through?

More broadly, are you considering a longer-term "End of the Globalization Era" doomsday scenario? Something that covers a fundamental reshape of the EU, systematically increased protectionism in the U.S., and a global re-emergence of trade barriers? How it affects not only your direct economic drivers, but those of your customers, your suppliers, your competitors, and other stakeholders? You may not like that scenario, you may not even truly believe in it. But it's in the realm of possibility, and if your company is doing good strategic risk management, in the current environment it should be front and centre in your risk management and strategic planning. What steps should you take now? What plans should you start preparing? What instabilities will harm you and which ones may present an opportunity?

The risk management world is full of checklists, frameworks, and diagnostics on the quality of ERM or risk management more broadly. Sometimes a simple litmus test provided by fate is equally powerful.​
Matthew Tanner link
19/4/2018 08:31:31

I would like to congratulate the entire troupe of Brexit for winning the litmus test for risk management in such a time-breaking stage. Yes, risk management is an indispensable ingredient of effective administration. As an organizer, you can never turn a blind eye to risk management. I honestly feel that risk management is all about spotting the openings as ignoring the dissipations. Context establishment, risk identification, risk examination and evaluation- are the key constituents of risk management. Instead of changing the risk profile, monitor it properly, by which the business manager can manage the risk effectively.


Comments are closed.

    Martin Pergler

    Principal, Balanced Risk Strategies, Ltd..

    Picture

    Archives

    February 2023
    June 2022
    January 2022
    October 2020
    July 2020
    June 2020
    March 2020
    January 2020
    March 2019
    January 2019
    July 2018
    February 2018
    October 2017
    September 2017
    June 2017
    May 2017
    February 2017
    January 2017
    November 2016
    June 2016
    May 2016
    February 2016
    November 2015
    June 2015
    April 2015
    February 2015
    January 2015
    December 2014

    Categories

    All
    News
    Offtopic
    Thoughts

    RSS Feed

Copyright © 2014-2020, Balanced Risk Strategies, Ltd. – Contact us
  • Home
  • About Martin Pergler
  • Delivery models
  • Articles
  • Why balance?
  • Old blog