Strategic Exposure Group


Risk management is predicated upon the ability to simulate, predict and prevent/mitigate adversities. But we can simulate and predict only what we can envision. And experience shows that catastrophes almost always arise from what cannot be envisioned until it happens. Therefore, relying primarily only on traditional risk management approaches leaves the unknown unaddressed. With this limitation, how can we address extreme risk that arises from events that can’t be envisioned, such as pandemics, frozen financial markets, natural disasters, new technology applications, changes in consumer-behavior pattern, etc.?

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KPaul@StratExpoGroup.com

  • What should be the objective of such a framework and how should this objective integrate with other goals and strategies?
  • What kinds of top-down policies and governance guidelines are needed to address vulnerabilities arising from the unknown and ensure sustainability of entities as going concerns? Who should be accountable for addressing such vulnerabilities?
  • What should be the strategies that accomplish this objective that also minimize the gap between prudent sustainability objectives and aggressive growth targets?
  • Which best practices achieve the framework objective effectively and efficiently?

Such threats need a framework that explicitly addresses un-anticipatable catastrophic exposure.

We help senior managers and boards understand the nature of extreme exposure from the unknown, and address key issues in relation to this framework, such as:

  • How do you ensure the next market crash won’t turn into an un-anticipatable meltdown for businesses, such as financial institutions?
  • How do you ensure survival when un-anticipatable longer-term trends redefine the marketplace for businesses, such as consumer products and services?
  • How do you protect shareholder value if a business requires significant upfront investment with payoff expected over decades when un-anticipatable political, regulatory, environmental or technological changes may render the operating model obsolete, such as for infrastructure businesses?
Karamjeet Paul,Risk Management,Sustainability Management,Crisis Management,Tail Risk,going concern,stress test,catastrophic exposure,catastrophic risk