Most risk management is reactive – plans are made, then risks assessed. Risks are then managed in silos and are not integrated leading to miscommunication, missteps and unforeseen consequences.
Our proven methodology is forward looking and pro-active. We can minimise the likelihood/impact of ‘random’ risks through deep analysis of the environment and designing a holistic campaign plan to address potential risks at the outset.
We fuse strategic planning, political, communications, developmental, environmental and commercial expertise to break down silos and integrate non technical/non financial risk management (political, social, legislative/regulatory, environmental, security, social and cyber).
We are not just focused on one area (political, security etc), but have senior expertise across multiple sectors: highly experienced business leaders, politicians, diplomats, senior service personnel, engineers, communications, humanitarian and development experts.
We access further expertise by partnering with a leading security firm, a global environmental consultancy, a cyber risk consultant and a thought leader in cultural and social risk analysis.
Why would companies need Strategia’s help?
While it is axiomatic that senior business leaders and investors are highly skilled in commercial enterprise, the contemporary environment frequently presents them with situations for which they may not be so well prepared. Strategia can provide that support.
There are many examples of where companies have encountered major difficulties in complex environments as a result of a failure to manage ‘non-technical/non financial’ risks. Two recent examples are:
“Company A was forced to abandon a $2bn project to mine a mountain sacred to the … after the … Courts resolved that the community had the final right to decide.”
“Company B said …would stop development of its …mine in South America indefinitely …a project that has already cost … more than $5 billion… been plagued by political opposition, permitting issues, labor unrest, cost-overruns and a sharp drop in bullion prices…the remote project…high in the Andes…has bumped up costs and fueled environmental opposition.”
Our approach can help companies aim off for / mitigate the impact of catastrophic risk.
Our methodology is relevant to any sector where the principal threats to license to operate are posed by physical, political, reputational, regulatory/legislative, cyber, environmental and social risk. We provide advice, mentoring and consultancy to reduce and control strategic risk in these vital areas.
We fuse senior commercial, developmental and military expertise in our highly experienced team – proven strategic leaders at the highest geo-political level in their own right and are supported by strategic planning, strategic communications, development and legal experts.
Why do Boards need added assurance?
In the UK there is an increased requirement on Boards to ensure that the traditional statement of a ‘going concern’ is broadened to include an explicit statement in the financial statements about whether the going concern basis of accounting has been adopted and “there are any material uncertainties about the company’s ability to continue to do so in future”. (Financial Reporting Council 2014 Guidance on Risk Management, Internal Control and Related Financial and Business Reporting).
In the US, Sarbanes Oxley (SOX) regulations require similar assurance: “Many organizations think of reputational risk only in terms of responding to adverse events. But they should also consider how to anticipate such events by understanding the risks the company might be taking, …part of a risk initiative also requires breaking down silos, so that compliance isn’t just a check-the-box exercise”. (Deloitte – Leveraging 10 Years of SOX for Stronger Risk Management)
This new requirement requires a broader statement about the board’s reasonable expectation as to the company’s viability based on a robust assessment of the company’s principal risks and current position.
We can provide assurance that this is the case or, where there is doubt, advice and assistance to improve that certainty.
How does Strategia’s Analysis Design & Delivery (ADD) methodology work?
The military experience and expertise Strategia draws on is of special relevance, particularly to industries where the importance of being ready for the unexpected is understood.
Through the application of Strategia’s ADD methodology we can support companies operating in complex environments in protecting themselves from risk.
This methodology will ensure that strategy is able to respond to the unexpected or unknown and that the necessary contingency plans, rapid reaction strategies and capabilities to deal effectively and quickly with unforeseen issues are in place.
We can advise companies on building consensus with other stakeholders, whether international, national or local and how best to win ‘hearts and minds’.
We can also mentor and train executives to deal with confrontation through negotiation and advise on a wide range of challenges and incidents as they arise in any part of the world.
Where has Strategia’s ADD methodology been proven?
The methodology has been adapted from the strategic planning methodology developed by NATO forces as a result of experience gained from the campaigns of the last 15 – 20 years.
All of these campaigns have been characterized by the number of ‘actors’, military – adversaries and allies, governments, local communities, media, NGOs, other pressure groups etc operating in complex, volatile and highly uncertain environments. Success has required, not only clarity of strategy, but also sophisticated analysis of stakeholders, deep understanding of the environment, persistent re-assessment and careful development, and integration of ‘lines of operation’ toward a carefully designed ‘end-state’.
This methodology, suitably adapted, applies equally well to the corporate world, where a complex mix of ‘actors’ need to be aligned to achieve a corporate goal in complex, volatile and uncertain environments.
We have used this approach in all our case studies.