Build resilience or attempt clairvoyance: rethinking risk management
Winning the last war doesn’t help. The worthy and well-intentioned efforts in train the world over will surely prevent an exact re-run of the “Great Recession.” However, just as surely, they will not prepare us for the next crisis. Worse, just like the 1918 Versailles Conference, they may in fact lay its foundations. Key lessons in resilience from worlds well-beyond financial services, including unintended consequences, provide an alternative to trying to win the last war.
This taskforce’s discussion will develop an actionable plan for developing resilient risk management including:
• Identification and management of sources of volatility and instability
• Specification and implementation of key components of resilience, including how to avoid attempts at – and the consequences from — clairvoyance
• A pathway towards an organizational and industry-wide culture of resilience that reflects and rewards those components
Led by Duncan Martin, Risk Experts Team, BCG
Discussion leaders: Robert Kella, Chief Risk Officer, Qantas
Simon Levin, Moffett Professor of Biology, Princeton University
William Rudin, Vice-Chairman and CEO, Rudin Management Company
Leo Tilman, President, L.M. Tilman & Company
