Dubai Centre for Risk and Innovation

A reflection on innovation, growth, and corporate strategy in New Zealand argues that sustainable economic progress depends on a culture of building, investing, and taking risk rather than divesting assets and prioritizing short-term shareholder returns.

Fonterra, Fletcher And NZ’s Vanishing Risk Culture - EDairy News English Analysis warns Fonterra and Fletcher divestments reflect weak risk culture in NZ corporates, threatening long-term shareholder value and growth.

https://youtu.be/Jq0n8vgggU0

How neuroplasticity helps us shape who we become | André Vermeulen | TEDxJohannesburg NOTE FROM TED: This talk, which was filmed at an independent TEDx event, appears to fall outside TEDx’s content guidelines. The speaker’s claims around neuro...

🌟 Risk Leaders Initiative: Exclusive Event 🌟

Does your organization truly understand the power of risk culture?

Fayadh Alenezi, PhD on LinkedIn: 🌟 Risk Leaders Initiative: Exclusive Event 🌟 Does your organization… 🌟 Risk Leaders Initiative: Exclusive Event 🌟 Does your organization truly understand the power of risk culture? In today’s uncertain and fast-paced world, how we think about, respond to, and manage risk can determine whether we thrive or simply survive. At the heart of this is risk culture.....

Don't think Technology can replace Your Human Touch

Building a Risk Intelligence system - Risk Culture Builders By Horst Simon Modern risk management is much more about the human factors than processes, procedures and following standards and frameworks, there is no one-size-fits all. You can follow standards and frameworks to the last letter and still be ineffective at the actual management of risk, purely ba...

Building a Risk Intelligence System

Building a Risk Intelligence System – The Executive Botswana Modern risk management focuses more on human factors than on processes, procedures, and adherence to standards and frameworks. There is no one-size-fits-all approach. You can follow standards and frameworks to the letter and still be ineffective at actual risk management, purely due to human factors...

Companies are being urged to enhance their vigilance and internal controls to combat insider fraud, which poses significant risks to corporate equity and brand reputation. According to an analysis by Gallagher, as reported by Risk & Insurance, corporate fraud annually erodes 1.6% of equity value, potentially leading to the downfall of global brands. The recent pandemic and economic downturn have exacerbated these risks, providing fertile ground for fraudulent activities.

Looking ahead, the report anticipates a surge in AI-powered social engineering attacks, supply chain fraud, and fraud related to Environmental, Social, and Governance (ESG) concerns in 2024. It emphasizes the importance of companies bolstering their internal controls, leveraging technology for fraud detection, and fostering a culture of integrity to counteract the increasing tide of corporate fraud.

Key statistics highlight the prevalence and financial impact of insider fraud:

41% of insider fraud cases involve employees, resulting in a median loss of $60,000.

35% of fraud cases are perpetrated by managers, with a median loss of $150,000.

20% of fraud is committed by owners/executives, resulting in a significantly higher median loss of $600,000.

Miranda DesPain, senior vice president at Gallagher, emphasizes the stealthy nature of corporate fraud, noting a typical lag of two to three years between the perpetration of a scheme and its discovery. She highlights the pandemic-induced shift to remote work and the challenging economic environment as factors that may have reduced checks and balances, making it easier for fraud to go unnoticed.

In light of these challenges, it is imperative for companies to enhance their internal controls, utilize technology for fraud detection, and remain vigilant. Additionally, they must prepare for the evolving landscape of fraud, including the potential rise of AI-driven fraud exposures.

The Next Wave of Workplace Fraud | Gallagher USA Trends to watch for as lockdown misdeeds come to light

Abu Dhabi's IHC creates AI board observer positionAbu Dhabi-based International Holding Company (IHC) has appointed an artificial intelligence (AI) entity named "Aiden Insight" as a board observer, making it a pioneer in leveraging AI for corporate governance. Aiden Insight, developed by G42 in collaboration with Microsoft, will provide data analysis and strategic insights to ensure IHC remains at the forefront of industry developments. The AI entity will attend board meetings as a non-voting observer, offering real-time insights to inform discussions and guide decisions. IHC aims to revolutionise the way it navigates the complexities of the global investment landscape. The introduction of Aiden Insight is expected to enhance decision-making, future-proof against emerging trends, promote innovation, and improve risk management and ethical leadership. "We are proud to welcome Aiden Insight to our Board as the AI Observer," said IHC CEO, Syed Basar Shueb.

As reported by Bloomberg:

Abu Dhabi’s Largest Firm Adds AI-Powered Observer to Board Abu Dhabi’s International Holding Co. is adding an AI-powered observer to its board, a move that the $238 billion firm said will help human board members make better strategic decisions.

How great is your colourful quarterly risk report?

As a seasoned risk management professional, I've witnessed firsthand the pitfalls of relying on colourful quarterly risk reports based on historic data. While these reports may offer a snapshot of past occurrences, they often fall short in providing actionable insights for effective risk management in the present and future. Here's why:

Limited Predictive Power:
Historic data reflects past events and trends, but it fails to capture emerging risks and evolving dynamics. In today's rapidly changing landscape, yesterday's risks may not be tomorrow's priorities. Without real-time data and analysis, organizations are ill-equipped to anticipate and respond to emerging threats.

False Sense of Security:
Quarterly reports can create a false sense of security, leading decision-makers to overlook or underestimate potential risks. By the time a risk materializes and is reflected in the next report, it may already have caused significant damage. Effective risk management requires proactive measures and continuous monitoring to stay ahead of emerging risks and potential threats.

Lack of Context:
Historic data alone lacks context and nuance. It fails to consider external factors, market dynamics, and socio-political shifts that can significantly impact risk exposure. Without a holistic understanding of the current environment, organizations risk making uninformed decisions based on outdated information.

Inability to Adapt:
Risk management is not a one-size-fits-all approach. Organizations must be agile and adaptable in their strategies to effectively navigate uncertain terrain. Relying solely on quarterly reports inhibits this adaptability, as decisions are based on stale information rather than real-time insights.

To truly optimise the management of risk and safeguard organizational resilience, businesses must embrace a more dynamic and forward-thinking approach to risk management. This means leveraging real-time data, predictive analytics, and scenario planning to anticipate and proactively address emerging risks and potential threats. By doing so, you can stay ahead of the curve and ensure long-term success in an increasingly volatile world.

Let's move beyond the confines of historic data and embrace a more agile and proactive approach to the effective management and optimization of risk. Together, we can navigate uncertainty with confidence and resilience!

https://riskculturebuilders.com/articles/risk-management-5-0/

Risk Management 5.0? - Risk Culture Builders Or actually; the effective Management and Optimization of Risk 5.0! The world is in a revolutionary transformation marked by the seamless integration of humans and artificial intelligence (AI) in the workplace. Spearheaded by thought leaders such as John Nosta, the Fifth Industrial Revolution is set...

https://www.linkedin.com/pulse/future-here-horst-simon-risk-culture-builder/

The Future is here! Radical Risk Management If you are still trying to Identify all the risks you are exposed to within the context of your business or spend endless hours converting historic data into useless risk reports in an effort to mitigate as much risk as possible for a green light on the road to taking less ri

https://www.strategy-business.com/article/You-cant-benchmark-culture?

You can’t benchmark culture Your company’s ideal behavioral strengths are unique, and shouldn’t be borrowed or copied — not even from a high-performance enterprise.

https://www.cityam.com/why-risk-culture-could-be-a-competitive-advantage-for-your-business/

Why risk culture could be a competitive advantage for your business The recent turmoil in the banking sector has underlined the importance of risk culture as a fundamental component of business resilience. The failures of