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Transcript of Strategic Risk Research Center
http://www.riskgroupllc.com
+ (832) 971 8322
STRATEGIC RISK RESEARCH
CENTER
COPYRIGHT RISK GROUP LLC 1
About the Founder
Jayshree Pandya Ph.D.
Founder: Risk Group LLC
Author of the book: The Global Age: NGIOA @ Risk
Web: http://www.riskgroupllc.com
Email: [email protected]
Phone: + (832) 971 8322
Jayshree Pandya (née Bhatt) is a visionary leader, builder of a new dawn,
working passionately with imagination, insight and boldness to achieve Global
Peace through Risk Management. It is her strong belief that collaboration
between and across nations: its government, industries, organizations and
academia (NGIOA) will be mutually beneficial to all—for not only in the
identification and understanding of critical risks facing one nation, but also for
managing the interconnected and interdependent risks facing all nations. She
calls on nations to build a shared sense of identity and purpose—for how the
NGIOA framework is structured—will define and determine the survival and
success of nations in the digitalized global age. She sees the big picture, thinks
strategically and works with the power of intentionality and alignment for a
higher purpose—for her eyes are not just on the near at hand but on the future
of humanity!
At Risk Group, Jayshree is defining the language of risks and currently
developing thought leadership, researching needed practices, tools, framework
and systems to manage Strategic and Shared Risks facing nations in a global
age. She believes that Cyberspace cannot be secured if NGIOA works in silo
within and across its geographical boundaries. As Cyber-Security requires an
integrated NGIOA approach with a common language, she has recently
launched Cyber-Security Risk Research Centre that will merge the boundaries of
Geo-Security, Cyber-Security and Space-Security.
Previously, she launched and managed Risk Management Matters, an online
Risk Journal and one of the first Risk Publications, publishing Industry Risk Reports
of Biotechnology, Energy, Healthcare, Nanotechnology, and Natural Disasters
over the course of five years. Jayshree’s inaugural book, The Global Age: NGIOA
@ Risk, was published by Springer in 2012.
Jayshree resides in Sugar Land, TX with her husband Pradip, and three children,
Shree, Shivani and Shiv.
COPYRIGHT RISK GROUP LLC 2
Figure 1 Risk Group Guiding Document
Strategic Risk Guiding Publication
The Global Age: NGIOA @ Risk
Addresses nations: its governments, industries, organizations, and academia at
risk in a global age
Addresses the global shifts of the emerging global age
Addresses global risk concepts, global risk fundamentals, and risk centric
integrated NGIOA governance fundamentals
Proposes the foundation of an Integrated NGIOA Risk Governance Framework
Dr. Jayshree Pandya, founder of Risk Group LLC, is ahead of the curve in addressing the
changing global fundamentals of the emerging global age. The global age, and its
changing global fundamentals has brought complex, chaotic, and turbulent times for
every nation—where failures on all levels have become self-evident, repetitive,
destructive, and potentially hopeless in nature and uncertainty. Nations are caught off
guard.
From what is visible worldwide today, the promise of progress and prosperity for all
nations does not seem to have materialized in this global age. Instead of progress and
prosperity, we see crisis and catastrophe overpowering and overwhelming the
capability of most nations to meet their promise of progress and prosperity.
Nations are in crisis. This introductory book addresses the global shifts and the changing
global fundamentals of the global age, to lay out a much needed foundation of an
integrated NGIOA risk governance framework for the near future. This book will make a
convincing case for the far-reaching need and understanding of global risk concepts,
COPYRIGHT RISK GROUP LLC 3
global risk fundamentals, and risk centric integrated NGIOA governance. The
integrated NGIOA risk governance approach proposed and discussed in this initiative is
rational, practical, and feasible. It will help create a dynamic, vibrant, and sustainable
NGIOA economy for the global age. This initiative is a first step towards that.
The ability to understand integrated risks is fundamental for every
NGIOA
Figure 2 NGIOA Integration
Risk Group pioneers value in Integrated NGIOA Risks
Global Risk
Nation Risk
Government Risk
Industry RiskOrganization
Risk
Academia Risk
COPYRIGHT RISK GROUP LLC 4
Need for Strategic Risk Services
Strategic Risk concerns are increasing across nations: its governments,
industries, organizations and academia!
The jarring disconnect between the risks facing nations: its governments,
industries, organizations and academia (NGIOA) and the priorities of most
nations governance is never more evident than in the recent years.
Each nation is facing recurring crisis. Its promise of progress and prosperity is
coming in serious question as crisis and catastrophe seems to be overpowering
and overwhelming the capability of most nations: its governments, industries,
organizations and academia decision makers.
Even today, in a global age, each NGIOA largely operates in silo—as individual
and independent entities. The silo NGIOA operations of isolation age that is in
existence across nations today, have little or no understanding of how they are
interconnected to each other, to how they are interdependent on each other.
Nor do they understand how they affect each other, within and across nations.
This silo existence of NGIOA ignores its internal as well as external
interconnectedness and interdependencies and denies nations a fundamental
ability to understand how each individual risk, as well as decision of each
individual entity, impacts them all, within and across nations. In a global age,
this is a critical risk facing nations.
The reality of global age challenges clearly necessitates the need for integration
and convergence of NGIOA. As NGIOA expands beyond their national
boundaries, there is a critical need for them to integrate, and have collective
risk identification, risk assessment, risk management, as well as risk-centric
decision-making ability. This necessitates that each NGIOA have an integrated
risk governance framework capability—to manage not only their individual risks,
but also collective NGIOA risks. This is a fundamental necessity and a need of
the time for each nation in a global age.
Today’s NGIOA are completely out of alignment, and generally do not
understand or support each other’s strategy at local, national or global level.
These NGIOA silos and its misalignment deny nations any potential capability to
have a meaningful national strategy. In addition, it also stops any potential
positive change dead, right on its tracks, before it has a chance within and
across nations. It is important that this culture of NGIOA silos is broken down, and
COPYRIGHT RISK GROUP LLC 5
integrated to pave the way of NGIOA aggregates, for collective national
success. In a global age, it is vital that each NGIOA break down their mentality
of going separate, as global age has brought a clear need for NGIOA to work
together-- united. Across NGIOA, there is a critical need to have a meaningful
discussion about the potential NGIOA synergies and conflicts that can help
create common national goals and objectives. This will help NGIOA avoid
recurring conflict and failure-- and will simultaneously lay a foundation for
success and prosperity of a global age.
No NGIOA, can live and operate in a culture that lacks basic understanding
and acknowledgement of risks. Neither can any NGIOA, deny or refuse to take
professional responsibility of the decisions that they make; nor can they refuse to
take accountability and ownership of their decisions. No NGIOA, can be in
denial, or can develop tone deafness towards the critical interconnectedness
as well as interdependencies at local, national, as well as global level. It is time
NGIOA changes, the culture habit within their nations, to transfer its risks to
others, in an increasingly interdependent and interconnected global age.
There is a need to end an age of apathy.
Each NGIOA needs to be concerned about the chaos and crisis surrounding
their nation. If enough NGIOA get concerned about the state of affairs within
their nation, it would certainly help bring about a change that is a need of the
time. Since each NGIOA has a role to play in a global economy, this global age
responsibility makes it vital that they get involved in local, national as well as
global risks and affairs.
We, as intelligent and responsible global citizens, cannot stand
unconcerned when there is chaos, confusion and crisis all around us. It
is in our own interests, and our nation’s interest that we need to
educate ourselves with the knowledge that is necessary and essential,
to analyze issues at all levels objectively.
COPYRIGHT RISK GROUP LLC 6
Figure 3 Need for Strategic Risk Services
Survival and success of nations: its government, industries, organizations and
academia are subject to uncertainty, gaps, strength, weaknesses, resources,
capabilities, motivation, risks-rewards and much more. The rapidly changing
fundamentals of the emerging global age are creating unusual complexities
and challenges for every nation: its government, industries, organizations and
academia (NGIOA).
Because of the rapid pace of change in the global environment,
Strategic Risk Research has become a fundamental need for survival.
While many organizations are actively focusing on Financial Risks,
Legal/Compliance Risks and Operational Risks, the much-needed focus on
Strategic Risks which consists almost 70% of the overall risks portfolio is non-
existent. Understanding the Strategic Risks due to the changing global
fundamentals, over-regulation, rapid technological changes, and rapid
changes in service models, global competition, and lack of effective
governance is a vital necessity for every nation.
Strategic Risk Research is about identifying the risks that are most vital to
achieving core objectives and goals as Strategic Risks are most consequential
for an ability to achieve objectives, build, and protect value.
COPYRIGHT RISK GROUP LLC 7
Strategic Risk Research Objectives
Without understanding integrated NGIOA risks, no nation: its
government, industries, organizations and academia can make
appropriate investments, take necessary initiatives, compete and
succeed!
The objective of Strategic Risk Research is to:
Identify, analyze and respond to those risks that could potentially impact
organizations ability to realize its strategic objectives.
Support the development of collaborative thinking about the challenges
facing the strategic objectives of organization.
Promote the ability of NGIOA to share common understanding and
awareness of threats facing NGIOA-so as to prepare any organization
ready to act independently but collaboratively.
Strengthen the resilience of an organization through systemic preparation
for the threats that pose the greatest risks to its survival, security and
sustainability.
Figure 4 Emerging Threats
Emerging threats
Industries
Technology
Services
Products
Compeititors
Innovation
Investment
Skills
Regulations
Geopolitical Tensions
Global Governance
Knowledge
COPYRIGHT RISK GROUP LLC 8
Strategic Risk Research Scope
Strategic Risk Research scope will define the boundaries of Strategic Risk Services.
Understanding the nature of client objectives and their current challenges, Risk Group
will recommend the scope of the Strategic Risk Services.
Broad Scope:
Global Risks
Regional Risks
National Risks
Industry Risks
Organization Risks
Narrow Scope:
Technology Risks
Product Risks
Service Risks
The scope will determine the need for Strategic Risk Research
resources.
Figure 5 Strategic Risk Research Scope
Global
Regional
National
Local
COPYRIGHT RISK GROUP LLC 9
Strategic Risk Research Approach
Risk Group’s proactive, objective, neutral and participatory approach
to Strategic Risks will help NGIOA take informed decisions about risks
facing their initiatives
Risk Group will draw risk data and information from
In House Risk Group Research
Client Interviews
Public information
All sources will be documented to promote credibility and transparency of the
assessment. Given the uncertainty inherent in assessing Strategic Risks, a wide
degree of uncertainty will be likely. Key limitations and Assumptions will be
noted.
In spite of the inherent nature of strategic uncertainties, Strategic Risk
analysis supports better decision-making
Risk Group’s approach to Strategic Risk Research is designed to provide
maximum value, with integrity and privacy that is desired by the board rooms
and c-suites.
Figure 6 Risk Group Strategic Risk Services Approach
Planning Strategy and Managing Strategic Risks goes hand in hand!
COPYRIGHT RISK GROUP LLC 10
Strategic Risk Research Methodology
Risk Group approach will be tailored to the needs of the organization
Figure 7 Risk Group Research Methodology
Strategic Risks impact an organization’s ability to achieve its objectives. Strategic Risk
Services is a process to identify, evaluate and communicate the risks facing
organization’s strategy. This process protects and creates value for
shareholder/investors. Strategic Risk Management is a process to identify, evaluate and
manage Strategic Risks. Strategic Risk management needs to be an on-going process.
Risk Group will
Research and Review Strategic Risks impacting the sector/industry/nation/world
to achieve a preliminary understanding of the risks facing client organization
Prepare an initial Risk Review that will help understand the Strategic Risks facing
client organization
Identify, understand, evaluate and achieve a deeper understanding of the
Strategic Risks facing client organization through meetings, interviews and
brainstorming sessions with c-suites, executive management, boardroom etc.
Evaluate the understanding of Strategic Risks and Strategic Risk Management
processes by client organization
Review and Record the Strategic Risk Profile of the client organization (Risk
Group Views+ Organization Views)
Communicate the Strategic Risk Profile to the client stakeholders
COPYRIGHT RISK GROUP LLC 11
Advise client organization and help them strategize on managing the Strategic
Risk Profile
Perform regular quarterly evaluation
Figure 8 Fine balance between success and failure
Understanding of Strategic Risks is the foundation to preparedness
Strategic Risk Research will provide nations: its government, industries,
organizations and academia a clear view of risk variables to which they may be
exposed –collectively or individually. An on-going thorough Strategic Risk
analysis will empower the decision-makers with a better decision making criteria
and process.
Too often, organizations fail to link the Strategic Risks to their organization risk
framework, simply focusing on risk management processes, legal and regulatory
compliance and operational risks.
A structured Strategic Risk Management process would allow organization within
any NGIOA be better prepared to meet its goals and objectives.
Risk Group Research would not be based on purely what organizations
think their strategic risks are—but would also have Risk Group internal
thought leaders add to what the Strategic Risks are—that would help
complete the organization risk profile
COPYRIGHT RISK GROUP LLC 12
Strategic Risk Research Plan
The Strategic Risk Research would be conducted with a view that the primary
purpose of any organization is to meet the shareholders / investors’
expectations. Any unforeseen and unidentified strategic risk compromises the
ability to support its fundamental objectives
Understand the organization
o Understand organizations objectives, strategies, business model,
culture, technology, operations, resource model, working practices,
communication protocol and so on
Mission, Vision and Value Statement
Strategic Plans
Annual Business Plans
Management Performance Scorecard
Stockholders annual report
Regulatory filings
o Understand the broader challenges facing the organization,
industry and nation through Risk Group internal research
o Understand the challenges as experienced by the organization and
its executives
Evaluate the challenges facing organization
Rate the risks
o Strategic risks that can be managed by the organization
o Strategic risks that have interdependencies and needs
collaboration of NGIOA to be managed
Develop a Strategic Risk Profile
Communicate the Strategic Risk Profile
Risk Research frequency is established –quarterly recommended
Risk Research Plans will be revised as necessary
An objective, independent, Strategic Risk Research plays a significant
role in the development and sustainability of any initiative / and or
organization within any NGIOA.
COPYRIGHT RISK GROUP LLC 13
Figure 9 Risk Group Research
Risk Group focus is on Strategic Risks
Risk Research
Strategic Risks
Financial Risks
Operational Risks
Regulatory Risks
Legal /Compliance
Risks
Technology Risks
COPYRIGHT RISK GROUP LLC 14
Strategic Risk Research Deliverables
A Strategic Risk Map Strategic risks will be individually rated and summarized. A Strategic Risk Map will
reveal which risks are most significant and should be the focus of management
for mitigation / and or management. It will also enable analysis of risk
interdependencies that will help them evaluate whether there is need for
collaboration within the sector/ industry/nation for possible mitigation/ and or
management of risks.
A Strategic Risk Report Strategic Risk Report will detail the identification, evaluation and
communication of the identified Strategic Risks
While the conventional Enterprise Risk Management (ERM) processes
have done a reasonable job in identifying and managing financial and
operational risks, it is now well acknowledged that it is the
management of Strategic Risk that will have the greatest impact on
any organization’s ability to realize its strategic objectives.
COPYRIGHT RISK GROUP LLC 15
Strategic Risk Research and Advisory Pricing
Risk Group offers Fixed Price framework for funding Sponsored Strategic Risk
Research as well as Advisory Services.
FIXED PRICE STRATEGIC RISK RESEARCH FUNDING FRAMEWORK: Under this
framework, Risk Group and the client organization agrees upon a fixed-price
arrangement based on the best estimate of costs needed to complete the
Strategic Risk Research, which can be adjusted if the parties agree or if the
client organization requests additional work.
FIXED PRICE STRATEGIC RISK ADVISORY SERVICES: Depending on the scope of
the advisory services, Risk Group and the client organization will agree upon a
fixed price yearly advisory services fees.
COPYRIGHT RISK GROUP LLC 16
Strategic Risk Research Areas (On-going) Research
Topic #
Risk Research
Areas
Scope of
Research
Fixed Price
Research
Funding
(USD)
Details
Comments
1 Strategic Risks:
Introduction
2 Strategic Risk:
Cutting through
Complexity
3 The Concept of
Strategic Risk
Management
4 Strategic Planning
& Risk
Management
5 Risk in Strategy
Implementation
6 Corporate
Governance
&Strategic Risks
7 Managing
Strategic Risks
8 Managing
Technology &
Innovation Risks
9 Resource
Management
&Sustainable
Development Risks
10 Insurer: Strategic
Risk
11 Industries:
Strategic Risk
12 Strategic Risk:
Case Studies
13
Risk Group is in process of identifying additional areas of interest for Strategic
Risk Research. In case Sponsoring Organization suggests research topics
relevant to their interests, Risk Group, after internal evaluation of cost will quote
the Fixed Price of suggested work-
INFORMATION
For further information, contact Risk Group at +832 971 8322
COPYRIGHT RISK GROUP LLC 17