The Megrow Podcast is LIVE!!!

Episodes Released

I’m very pleased to announce the release of Episode 1 and Episode 2 of the Megrow Podcast.

The Podcast is hosted on Megrow’s YouTube channel. I aptly named it the “Asia Risk and Opportunity Podcast” or “AROC” for short.

Episode one is a general, introductory episode explaining the why / what / how:

Episode 1 of the AROC Podcast – hosted by Megrow


Episode two dives right into the core matter of Enterprise Risk Management: what are the benefits to business?. I use CyberRisk as an example to demonstrate the tangible outcomes of good Enterprise Risk Management. “Tangible” in this context clearly refers to dollars and cents.

Episode 2 of the AROC podcast hosted by Megrow
why?

I’ve been thinking for quite some time about which channels are best suited to share my thoughts about ERM. Obviously, this blog is my first choice, followed by LinkedIn and then Twitter. These three avenues all have their benefits and particularities. But I always felt something was missing. After quite some pondering, I decided to try a Podcast to complement my current channels.

looking for contributors

This podcast is fully open to anybody who is looking for a channel to share ideas and views about risks and opportunities. However, I have two border conditions: first, the message must be of practical value and secondly, a distinctive focus on matters in and across Asia is sought. Ironically, I broke my second rule with Episode 2 already, so next time I need to do better.

the future

I’m planning to release a few episodes over the course of 2019. However, neither do I want to stress nor limit myself by an overly specific target. If I find sufficient speakers, I might release an episode every 2 weeks, otherwise there will be just a handful in 2019.

The beauty of this podcast lies in its flexibility with regards to length and looks. It can be a 60 seconds video or a 30 minutes conversation – and anything in between.

Hence, if you are passionate about a risk-relevant topic with a distinctive Asia-relevant touch to it: please please stand-up and get in touch with me. Recording and editing isn’t a big anymore. Let us have a chat soon!



Risk Mapping – Velocity of Change Matters

Displaying an organisation’s risk landscape in two dimensional impact / likelihood matrices with a colour coding showing the corresponding threat level from green (“can live with it”) to red (“live threatening”) is part of the ERM gold-standard. It is intuitive, relatively easy to do, appeals to all stakeholders, ensures consistency and allows, to a certain extend, peer-comparison.

Screen Shot 2016-05-27 at 12.18.29 PM

In an ever-accelerating1 world an additional dimension depicting the velocity or propensity of each risk to change would come handy. Wouldn’t it be helpful to add some indication of the velocity of change to this graph, a third dimension showing how quickly a risk evolves?

Screen Shot 2016-05-27 at 3.31.46 PM

Let’s look at two examples to make this point: longevity, a risk and an opportunity for many businesses, is comparatively well understood. The risk is not static, however the speed of evolution is relatively slow as long as we disregard black swan events (such as the discovery of the fountain of youth…..). In the 3D chart outlined above, we would probably put ‘longevity’ close to zero on the velocity axis.

Cyber Risk, on the other hand, is in stark contrast: on the likelihood axis we would put it (close to) ‘certain’, impact probably medium (depends on the nature of the business under discussion). For sure, everybody would put the cyber risk way out on the velocity axis!

When we do ERM work with our customers, we always give consideration to the velocity of change. This forward-looking, dynamic approach to risk mapping makes Megrow’s customers better prepared to capture the opportunites that arise out of the changes!


1 “The Great Acceleration: How the World is Getting Faster, Faster” by Robert Colvile

ERM increases company valuation

Enterprise Risk Management is viewed favorably by rating agencies, stock exchanges, regulators and other stakeholders – this is all good news.

But some boards and CEOs remain skeptical about ERM’s value: sometimes a perception reigns that ERM is a pure cost, a governance exercise, some box-ticking event, doesn’t deliver any topline and produces nothing but a thick report that nobody reads. The ERM-journey up the risk maturity ladder requires board and management commitment, hence the question arises: what is the return on this investment, in other words how does a CRO convince the board and the CEO that ERM creates value for the company?

Over the past two years two independent, reasonably comprehensive studies have shown that there is a good correlation between good ERM-practice and a company’s valuation – in other words: it pays to do ERM !

Study No.1 says […our results suggest that firms that have reached mature levels of ERM are exhibiting a higher firm value ….] and study No. 2 comes to a similar conclusion stating that […results confirm a significant positive impact of ERM on shareholder value…].

This is very good news for all ERM practitioners, boards and executives of all companies!!


Risk Maturity Ladder is defined here

The valuation implication of ERM maturity. Mark Farrell & Ronan Gallagher, 2014

Determinants and value of ERM. Nadine Gatzert & Michael Martin; 2016

ERM on the move

Great to see how ERM is gaining momentum in emerging markets!

Take a look at “Enterprise Risk Management (ERM) in High-Growth Insurance Markets; The Trust Re Experience”1. I really like the emphasis on “enabling“!!

When we do ERM-related work with our clients, the opportunity-aspect gets a lot of attention. 

Megrow Pte Ltd – your partner for all things ERM.


1 www.trustre.com