Monday, 23 March 2015

How it starts - Strategic Risk Management - Notes #2

Today's blog is concerned with strategic risk management from a generic point of view.

No matter what business your organisation is engaged in, if you are serious about your business for survival in today's fast-paced global race for domination, more and more the value of strategic risk management becomes crucial for that success, especially as technology allows actions and changes to be executed faster than ever before.

In our modern world where uncertainty has increased, so too have the opportunities for success. It's because of this complexity in today's world that you need to equip your team with the knowledge and skills of strategic planning and the implementation process to manage all levels of the business. Risk is not an isolated area of activity in any organisation, it is linked through all areas of the business (human resource, finance, production, sales, etc), where some risks are linked together more strongly than others, which is a concept often referred to as the "risk interdependency field". Read http://www.businessinsurance.com/article/20110918/NEWS06/309189982 which is a classic example of corporate decisions that had a direct impact on risks elsewhere throughout the organisation.

If you are looking for research material to enhance your knowledge on 'risk interdependency field' I suggest you acquire this book which can be obtained here


Finally, there is one other concept that you should be aware of, it is the 'enterprise-wide view' which involves the entire organisation to gain an appreciation of the likely effects or consequences of alternative decisions.

It is important to note that 'Strategic Risk Management' is not a stand-alone discipline but is to be considered as being part of a larger collection of disciplines, especially Project Management and Financial Risk Management.


Well thats it for today. In my next blog I will discuss more about the concept of risk, until then....Peace out!

Sunday, 22 March 2015

What is Strategic Risk Management - Notes #1

Strategic Risk Management (SRM) originated in engineering, health and safety but is now widely used in commercial, industrial and many other business including online enterprises. As companies continue to expand into more cross border ventures in a world of rapid change, especially as there is an even greater use of technology which allows actions and changes to be executed faster than ever before, strategic risk management becomes crucial in response to statutory and regulatory external pressures.

No matter what business an organisation is engaged in, there will be business risks. A good example of this is Apple's entry into China http://www.cnbc.com/id/101340364 or Alibaba into America http://www.techtimes.com/articles/4518/20140318/alibaba-to-enter-u-s-stock-market-with-100-bn-valuation.htm

If your business can identify the need for change, design the changes required and implement these changes effectively and efficiently as compared to the competition then you are more likely to survive and prosper. A good and note worthy example of a business that understand risk are the drug cartels. Check out this article by Chris Mathews and tell me if you're not overly impressed (focus on how they can keep a step ahead of others)  http://fortune.com/2014/09/14/biggest-organized-crime-groups-in-the-world/ .....focused and ruthless to ensure that their strategy is executed. There is an old adage " risk and reward go hand in hand."

So, what are the core areas that an organisation should devote its efforts and resources to when considering SRM? There are essentially 4 core elements and they are:-

  • Strategic Planning
  • Making the strategies work
  • Project management of change, and
  • SRM
Strategic planning is identifying the best options available and selecting the most appropriate.

Connecting the macro strategic plan to the day-to-day activities is critical to making the strategies work and for its delivery.

Applying 'project management' concepts, tools and techniques allows the manager to plan and implement change effectively so as to increase the likelihood of achieving the required strategic objective. I would recommend that if you're not familiar with project management concepts and its application to business organisations that you check out the Project Management Institute and register for their courses http://www.pmi.org/

SRM identifies, monitors and manages the risk profile of the organisation......this couldn't be a much more concise statement! A major failure or deviation observed in any of those areas can result in the need to revise or change any or all of the previous items which could entail the formulation of a new strategic plan.
It is also worth noting that implementing change to achieve a desired strategy generally covers 4 primary risk areas which are:-

  • strategic risk
  • change or project risk
  • operational risk
  • unforeseeable risk 
I will discuss these areas later on in my blog. If you have any comments please don't hesitate to leave one.


Peace out!!

Friday, 20 March 2015

Online Business Research notes

Ok, so I'm yet to post my MBA notes on Strategic Risk Management but while I was reading one of Pat Flynn's blogs at http://www.smartpassiveincome.com/my-first-online-business/ I was intrigued by his early approach to the business of blogging and its relation to business strategy. Here are my summary notes in the order of his sequencing:-

  1. Started his blog in June 2007 to keep track of his notes for the LEED. WordPress was used.
  2. His content was created by taking his reading notes from his books and then consolidating them online. He created tables and charts to organise things; created acronyms; posted pictures; and created his own sample questions from his reference guide.
  3. Following similar discussion forums he would insert links and backlinks (I have no idea what this is but I will research it) to different parts of his site that were relevant to the discussions.
  4. After passing his exams, he started learning about 'targeted web traffic'.
  5. He then set up his blog with "Google Analytics".
  6. 'Referral Traffic" came from many other sites around the web that were highly authoritative backlinks (that word again) for him. 'Direct Traffic' are people typing in the domain directly in a web browser or visitors coming from 'bookmarks', 'desktop shortcuts' and 'links in emails'.
  7. He monetised his site through 'Adsense' and put an 'image ad' on it. Naturally he researched the best places to put ads so as to maximise his income.
  8. He continuously educated himself through 'Podcasts' and other forums.
  9. He earned additional revenue through 'private advertising' by using 125x125 pixel 'banner ads' embedded in the sidebar of his site.
  10. He spent considerable time listening to the 'Internet Business Mastery Podcast' everyday.
  11. He began to write a 'study guide' for the LEED exam using Microsoft Word.
  12. After that he converted his study guide into a PDF and created a cover in Photoshop.
  13. He used 'E-Junkie' a digital product delivery service that would automate the entire checkout and delivery process for him.
  14. He then used a sample 'sales copy' template from a book he read by Yanik Silver's 'Moonlighting on the Internet'.
  15. He published his sales page and put a link to it in the header of his site and at the bottom of every single post.
  16. Once he completed the 15 items above his sales started to skyrocket.
In my Strategy notes I intend to touch on his approach based on strategy terminology. It would make a good case study for me.

Well thanks all for now....please don't forget to send your comments.


God Bless