Chris de Wolfe, global director of risk management at Mars Inc., shares his challenges of getting the global risk management program at Mars up and running.
“The CRM group had a lot to offer but was severely underutilized, which led to high insurance premiums, a high risk profile, and a significantly reduced resiliency and recovery capability,” Chris said.
Reflecting on how Mars as a business became a major success, de Wolfe decided that he needed to market and promote his own department in the same way. Partnering with Lootok, a risk management consultancy firm, he developed a strategy to engage with the employees in a fun yet educational way. He devised a 5- to 10-year plan, broken into 12- to 18-month strategies and individual project plans by mapping out all of the products and services that risk management offers. He conducted a perception survey and drew up a program based on the ABCs of risk management.
“The ABCs allowed people to understand that risk management not only provides insurance, but it also ensures that the business continues,” said de Wolfe.
Sean Murphy, CEO and founder of Lootok, said of de Wolfe:
“I’ve known Chris for 10 years and what differentiates him is that he treats his program as a business. He had a good program before but he wasn’t satisfied with it so he completely revamped it and is now reaping the benefits.”
While artists, athletes, and performers struggle to make their mark in the public eye with a memorable act or viral moment, a different type of celebrity has been emerging on the scene - the spokesperson for a crisis.
Here’s a quick exercise to highlight the point:
Jeffrey Boyd, Lew Frankfort, and Stephen Hemsley. Do these names sound familiar?
If not, don’t feel bad. They are the CEO’s of Priceline.com, Coach, and UnitedHealth Group, respectively.
Now, how about the names Tim Cook and James Comey?
We can immediately recall them as the CEO of Apple and the FBI Director, respectively, feuding over a locked iPhone involving a federal investigation of the San Bernardino shooting.
The media diligently covered Cook and Comey’s debate for more than three months. During that time, both men emerged as stars in a cast of characters ranging from lawyers, judges, politicians, and even presidential candidates. The media and public tuned in to hear their perspectives on data privacy, security, technology, civil rights, and terrorism.
Will BCM software deliver on its promise of making your BCM program easier to run? Is it really possible for BCM software to eliminate the difficulties in running your program?
Yes, it can—but there’s a catch. It won’t address challenges that are unique to your program. Essentially, your problems need to be shared by every other customer of the software.
Download Best-in-class BCM software exists, the fifth myth in Lootok’s series on the five myths of business continuity management (BCM)!
Sharing a few thoughts on cyber security…
I was on the phone last week with a data visualization expert and author discussing visualization problem solving—basically, how to solve problems or at least understand problems with pictures (i.e., drawing pictures). He asked a question about cyber security: “Why is a cyber threat so scary? Isn’t it just another threat?” He was right… in part—cyber is another threat, just like infectious disease, civil unrest, flood, power outage, fire, war, or accident. While we use common frameworks and capabilities for threats such as command and control, situation awareness, threat intelligence, common operating picture, common ground, and so forth, each threat has unique characteristics we need to consider. Why is cyber security on the top of every executive’s mind? It comes down to six (6) characteristics of a cyber threat:
There’s a mnemonic for these six (6) characteristics: “is wild.”
Keeping a BCM program alive doesn’t get cheaper or easier over time. In this eBook, we’ll talk about why.
Download It gets cheaper and easier, the fourth myth in Lootok’s series on the five myths of business continuity management (BCM)!
The risk matrix is a standard tool commonly used in risk assessments. It’s straightforward to use, and easy to explain. The only trouble is, the risk matrix doesn’t actually forecast or measure risk.
When used as a quantitative tool, the risk matrix is misunderstood. Our challenge as practitioners is to recognize the limitations of the risk matrix, so we can use it in a way that increases understanding of the threats around us. In this eBook, we explore how.
Download The risk matrix measures risk, the third myth in Lootok’s series on the five myths of business continuity management (BCM)!
Many of us business continuity management (BCM) professionals are convinced that a business impact analysis (BIA) is a “must-have” for any company. On top of that, we often believe the more information we gather, the better. But after the enormous effort to collect mountains of data and conduct endless interviews, we end up with little value to show for it.
Doing a BIA is expected of us, but do companies actually need a BIA? I guarantee that conducting an extensive BIA project is a quick way to exhaust your resources, stall your program agenda, and taint the reputation of your program. But if you’re willing to question why you’re doing a BIA, and then facilitate the process in a practical way for participants, you can maximize your investment. This eBook explores how to do this, and why it matters.
Download You need a business impact analysis (BIA), the second myth in Lootok’s series on the five myths of business continuity management (BCM)!
As BCM professionals, we’ve long believed in the myth that a plan is our key to recovery during a disruption. Often, we hyper-focus on the plan as undeniable proof that the right actions will be taken in an incident. This is the worst possible approach. Learn why in our eBook, The plan is the promised land, the first in Lootok’s series on the five myths of business continuity management (BCM)!
A massive data breach at Sony Pictures Entertainment, which experts believe was targeted by North Korea as retaliation for a film depicting the assassination of its leader Kim Jong Un, has led to an international incident that has gained the attention of business continuity professionals. Even large companies like Sony can sometimes put business continuity planning on the back burner. BC professionals say that attacks like this can sometimes change their minds.
The retail sector faces risk challenges ranging from cyber security threats to active shooter incidents. These threats, coupled with advances in new technologies, social media and public perceptions of risk have required the retail sector to reevaluate the resiliency of their business.
Written by Lootok’s Sweta Chakraborty and Iris Chung.
$18 billion dollars. That’s the number estimated in damages caused by Hurricane Sandy just in the state of New York alone. With the unexpected turns that transpired amidst the super storm, all businesses were reminded of the importance of business resiliency.
Given the vast amount of information presented to-date, it is still very important that the financial sector revisit the surprises from Sandy to ensure that critical financial services are better protected. A team of experienced BCM advisors gathered the recommendations in the accompanying table from industry thought leaders in leading global financial services companies to learn from their perspectives.
When it comes to managing risk, one oft-overlooked aspect is risk perception, or how we perceive a threat. What we believe or do not believe about risks has an enormous effect on how well we prepare ourselves for them, and the action we take when they occur. What factors into our fears, and how do they impact our decision-making?
Dr. Yossi Sheffi explains the “detectability axis,” which considers threats you can only detect only after the fact. This concept challenges our conventional methods of measuring risk using probability and impact.
At first glance, it appears that Carnival Cruise lines was well prepared when one of their ship had an engine fire and subsequently lost power last week. The media, however, tells a different story. Here are three points that Carnival may have overlooked in their crisis response.
Why all the ruckus about naming a winter storm? Sometimes, the intention behind the names is to draw the public’s attention to severe weather. While winter storms may not have as large of an impact as hurricanes, they can often be erratic; for example, dumping snow in one area while leaving nothing more than rain or fog in another. Now, it’s becoming clear that superstorms have hype cycles of their own.
The highest rated Super Bowl in history may go down in the books for the 34-minute power outage that upstaged the million dollar ads. With all the chatter about the blackout, advertisers were concerned about the effect on television ratings, while some brands capitalized on the opportunity to own the conversation through social media. Many are claiming the real winner of Sunday’s game to be Oreo, whose clever blackout tweet got retweeted 10,000 times in less than an hour.
When it comes to risk perception, we are notoriously prone to misconceptions. Whether fearing planes over bikes or elevators over stairs, we have a tendency to misjudge just how dangerous certain situations are.
The fact that Tokyo found the nuclear reactors in a worse state than previously announced underscores the need for honest, factual information for public consumption, and the importance of media in delivering this communication. The age where authorities view the public as a panicky wildcard that needs to be soothed, rather than as an equal partner in mitigating and recovering from a disaster, must come to an end – especially in a world where, thanks to the internet and information networks, information is disseminated to a wider audience at a faster rate than history has ever experienced before.
Was the community immediately surrounding Tepco’s reactor integrated in mitigation efforts prior to the incident? Subsequent actions and the announcement of possibly 30 billion dollars in claims indicate the opposite.