Extended Enterprise Risk: Managing Complexity in 21 st Century Organisations Carolyn Williams, Technical Director, Institute of Risk Management 30 January.

Extended Enterprise Risk: Managing Complexity in 21st Century OrganisationsCarolyn Williams, Technical Director, Institute of Risk Management

30 January 2014

What is thought leadership?

Recognition – Attributes of a profession

• Recognised standards

• Codes of ethics and behaviour

• Proven knowledge by qualification

• Portable and transferable skills

• Continuing professional development (CPD)

• Recognition of experience and achievement

Thought Leadership Focus

• Enterprise risk management

• Professional competence, qualifications and training

• Emerging and potentially widespread risk

• Interface between risk management and other disciplines

• Steering group

Thought Leadership Research Projects

© 2012 Centre for Health Enterprise 6

Complex systems

A complex system is one in which even knowing everything there is to know about the system is not sufficient to predict precisely what will happen.

© 2012 Centre for Health Enterprise 7

A complex system is one in which even knowing everything there is to know about the system is not sufficient to predict precisely what will happen.

Complex systems cannot be controlled – only influencedSimple systems behave more like complex systems when under stress

Complex systems

www.apod.nasa/apod

Extended enterprise risk

• Complex systems analysis

• Shared value models

• Innovation

• Standards and assurance

• Changing models in the public sector

• Leadership v management

• Risk management competencies

• IT and the cloud

• Communication and governance

Extended enterprise risk

Complex systems and network analysis

• Identify boundaries

• Identify flows and connections

• Model the network

• Network analysis – density, complexity– How quickly information flows in different parts– Critical points for failure - bottlenecks

© 2012 Centre for Health Enterprise 11

Draw on widely diverse

perspectives

Adopt open enquiring mindset

Go out of your way to make connections

Tasks& ideas

Relationships & behaviours

Be Clear

Be Curious

Be Courageous

Invest in promoting

values

Establish compelling

vision

Embrace uncertainty

Distribute leadership &

decisions

Desired leadership characteristic

Risk management competencies in the extended enterprise

• Comfortable with ambiguity, paradox and conflicting ideas

• Negotiation skills

• Conflict management

• Organisational ability

• Strategic ability and future scanning

Other IRM Developments

• Cyber Risk

• ‘Sharnbull’ guidance

• New digital platform

• Revised Certificate and Diploma

• Certification

• Global Risk Awards

Tuesday 20 May 2014, London

Email: [email protected]

Tel: +44(0)20 7709 9808Fax: +44(0)20 7709 0716

Institute of Risk Management6 Lloyd’s AvenueLondonEC3N 3AXUnited Kingdom

www.theirm.org