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ERM: Building a Risk Culture in your organisation is now essential as unexpected events are happenin

Events like superstorm Sandy are natural triggers for companies' reexamination of their risk preparedness and business resilience planning, but they should also start an internal dialogue about risk culture. "Such events always serve as a wake-up call," wrote Martin Pergler, Senior Expert, Risk Practice McKinsey & Co. "I think there will be lots of surprises around the world by companies who didn't realize the role of the affected area somewhere deep in their supply chains and will face supplier disruptions they weren't expecting."

Sandy is more proof that large, unexpected events are happening more frequently than before.

This article then describes the need to look at 'mega risks' systematically. Another important lesson is that mega risks are not entirely unpredictable.

Read more in the full article with case study on AFP Org.

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This item appears in the following sections:
Operations
Operational Risk Management
Treasury Technology
Selecting & Implementing TM Systems
Financial Risk Management