Leading from Under the Sword of Damocles

Description

Globalization trends and the rapid pace of technological innovations have introduced unprecedented change and uncertainty. For unprepared businesses, the drivers of the Fourth Industrial Revolution will become a constant source of surprise and crises will unfold at an ever-increasing rate. To thrive under these conditions, companies must adopt new risk management technologies and practices that enable business leaders to better anticipate and adjust to changing dynamics. This book helps readers understand how algorithm-based predictive and prescriptive analytics principles can be used to control risk in today’s dynamic business environment. It serves as a reference guide for business leaders and risk management practitioners of companies that are global in reach or operate dynamically complex systems. Using the technological and scientific innovations presented in this book, business leaders can gain a wider understanding of risk and prescriptively determine which actions are necessary to ensure the business is optimally positioned to meet its stated long-term goals and objectives. Case studies show how the presented methods can be practically applied to preemptively expose risks and support decisions to optimize, transform or disrupt current business models, strategies, organizational structure and information systems when necessary to maintain a market position or outperform competitors. These methods have been proven through hundreds of client cases. By using mathematical emulation to link business risks to strategic imperatives, it becomes possible to achieve a higher annual profit margin and better growth. As we enter the Fourth Industrial Revolution, companies that are able to expose risks caused by dynamic complexity and maintain the alignment between the goals of the business and operational execution will be better prepared to make the shifts necessary for long-term success and keep the business moving toward its goals. Front Matter ....Pages i-xvi Front Matter ....Pages 1-1 Introduction (Nabil Abu el Ata, Annie Drucbert)....Pages 3-6 The Looming Danger: Mismanaging Risk (Nabil Abu el Ata, Annie Drucbert)....Pages 7-13 Dynamic Complexity: The Cancer of Business (Nabil Abu el Ata, Annie Drucbert)....Pages 15-20 The Loose Cubic Dilemma (Nabil Abu el Ata, Annie Drucbert)....Pages 21-26 Meeting Business Targets and Constraints (Nabil Abu el Ata, Annie Drucbert)....Pages 27-32 The Basics of Universal Risk Management (Nabil Abu el Ata, Annie Drucbert)....Pages 33-49 The Challenge: Escaping the Tunnel Vision, Identifying the Best Path and Evaluating the Reward (Nabil Abu el Ata, Annie Drucbert)....Pages 51-56 Analytical Versus Numerical Solutions (Nabil Abu el Ata, Annie Drucbert)....Pages 57-61 Using X-Act OBC Platform for Risk (Nabil Abu el Ata, Annie Drucbert)....Pages 63-70 Business Monitoring: Moving from Understanding to Implementation and Operations (Nabil Abu el Ata, Annie Drucbert)....Pages 71-75 The Predictive Estimation of Dynamic Complexity (Nabil Abu el Ata, Annie Drucbert)....Pages 77-81 Identifying the Cure for Dynamic Complexity: Improve, Transform or Disrupt? (Nabil Abu el Ata, Annie Drucbert)....Pages 83-92 X-Act OBC Platform Metrics Guide the Disruption Decision (Nabil Abu el Ata, Annie Drucbert)....Pages 93-103 The Prescriptive Analysis: The Three + One Rule (Nabil Abu el Ata, Annie Drucbert)....Pages 105-122 Getting Started with Universal Risk Management (Nabil Abu el Ata, Annie Drucbert)....Pages 123-129 X-Act OBC Platform Walk Through (Nabil Abu el Ata, Annie Drucbert)....Pages 131-159 Using X-Act OBC Platform Metrics for Predictive Diagnosis and Prescriptive Treatment of Risk (Nabil Abu el Ata, Annie Drucbert)....Pages 161-167 Front Matter ....Pages 169-169 Case #1: Managing Corporate Risk (Nabil Abu el Ata, Annie Drucbert)....Pages 171-181 Case #2: Managing Market Erosion Risk (Nabil Abu el Ata, Annie Drucbert)....Pages 183-190 Case #3: Managing Operational Risk (Nabil Abu el Ata, Annie Drucbert)....Pages 191-196 Case #4: Managing Risk of Cost Escalation and Service Quality Degradation (Nabil Abu el Ata, Annie Drucbert)....Pages 197-203 Case #5: Managing Risk of Corporate Integration (Nabil Abu el Ata, Annie Drucbert)....Pages 205-213 Conclusion (Nabil Abu el Ata, Annie Drucbert)....Pages 215-218 Back Matter ....Pages 219-233