Trust Decisions: Future Risk Architecture...

Leadership within the enterprise requires "Trust Decisions" that they can count on.  Operational Risk Officers have a fiduciary duty to provide top executives with the confidence that the data and information they provide is trusted.

So how do you assist any corporate leader, who has the responsibility and accountability to the Board of Directors to make informed and sound decisions?  The answer is, that it depends on how willing the CxO's in the enterprise are to engineer a "Trust Decision" model and framework for the business.

The truth is, most executive managers have their own way of doing this.  The process that the CEO makes decisions, is quite different from how the CFO makes decisions and the COO may have a documented and tested way to make their decisions.  The point is, that major "Trust Decisions" for the good and welfare of the enterprise are being made by people who are each doing it differently.  These human decision makers are relying on a number of ways to get to the final answer.  The decisions from leadership are not as trusted and reliable as they could be.

As an Operational Risk executive charged with making timely and correct decisions you have no choice but to have the tools and the trusted sources to enhance your situational awareness.  The safety and security of the facility, information or peoples lives are at stake.  That is why you test and continually improve the process so your analytics dashboard, intelligence feeds and data sensors are all operating with integrity and in real-time.

You are relying on information that changes by the nanosecond and a system designed to provide decision support.  Intelligence-led investigations or reacting to the latest incident requires systems designed and tested to support human "Trust Decisions."  Now back to the executive leadership and their process for decision-making.  What is it?  How does the CEO make the final decisions for the future wealth of the company and it's stakeholders?  Are they trustworthy?

Unless you have seen the "Trust Decision" process and trusted data framework engineered for your enterprise, then probably not.  Think about all of the leadership level projects and how they turned out.  How did executive leadership decide to buy that other company or merge with their favorite supplier?  What process did they use to ensure all of the due diligence data was correct?  Why are the sources of data trusted?

We have the opportunity to improve and to arrive at a point where we make "Trust Decisions" our priority and a prerequisite.  After all, our employees, customers, shareholders and even mankind deserve it.  The challenge begins.

Whenever you encounter your next major business decision with your CxO, ask them how they arrived at the decision.  Ask them to explain the process they used and the sources of trusted data they relied on.  Ask them why they think the architecture of the decision at hand, is the most sound and trusted decision that can be made with the time available.

You are now well on your way to better understanding the power and the future risk architecture of TrustDecisions.

Liaison Mission: When Will You Introduce Them?

As a current Chief Executive Officer or Commander across some branch or agency, who have you named as a key "Liaison?"  Who is this vital person that you have asked to be your voice, your thinking and your representative to a partner, collaborator or strategic ally?

In Chris Fussell's book One Mission:  How Leaders Build A Team of Teams, the Task Force Liaison is described as follows:

"We clearly share a determined adversary--one that, unlike our organizations, is networked and thus moves with incredible speed. In the Task Force, we are now trying to forge a new type of model based on relationships among individuals and organizations like yours--and we'd like to be more closely connected with your organization. Winning will come from leveraging our mutual strengths, sharing insights and nuanced understanding of the problems and respecting one another's positions.

To help our partnership, we would like to give you one of our best people as a liaison. I expect our liaison to be an asset to you, sharing anything we're doing, providing our most timely intelligence, and seeking out ways that we can help your organization accomplish its goals."

This idea is not a new strategy per se.  Similar derivations of the concept have been utilized for hundreds if not thousands of years.  So why is this so important now, to the current state of global and corporate affairs?

The first reason is that operating at the speed of "iMessaging" social media, will create chasms of misunderstanding.  The simple fact is that information being collected, interpreted and disseminated in your digital-based platforms will most likely have gaps.  The messaging and communications will be hard to decipher by others, who don't know all of the acronyms as just one example.

This is where an embedded "Liaison Officer" or representative can bridge the cultures and the lines of direct messaging.  This is how the speed of the combined network is increased in it's ability to pivot, to adapt and to solve problems, faster and with higher quality than the competition.

The second reason is that a key mission of the nominated Liaison is to establish, maintain and perpetuate trusted relationships.  Otherwise, how can the leaders of your two organizations gain any momentum, in the quality and the speed of the partnership that is desired as a relevant outcome?

Now think about your own organization.  Where do you have a blind spot?  What other entity, team, business unit or agency is now seen as a barrier or competitor?  Are you both after the same customer, the same target or the same outcome?  Is a partnership in place now, to even embed or exchange Liaison personnel?

Believe us when we say that your adversary has already done the same.  They are working together across boundaries to share intelligence, to exchange vital data and to work in tandem to perpetuate their cause, their ideology or their campaign.  They have their own trusted Liaison's working each day, to move faster than you are and to achieve new gains in their mission, while you are worried about the unknowns.

Who is it in your organization that you feel that you can't live without?  The one or two leaders that you rely on each day.  The personality that exhibits the way that "Adam Grant" describes a "Giver" or "Matcher," in the way they operate across the team and within the company.  This may be the best person for you to let go of and to be your next "Liaison" to that vital partner, agency or even country.

Looking across the landscape of America, you will find examples of this idea and methodology that is working.  You will find places across the globe where it is in total failure.  Yet how can you raise the odds, that the likelihood of the person you choose to be embedded with another organization, will indeed succeed?

As a current Team Leader, CEO or Commander, it means you will have to go a step farther.  It means that you will have to take this person side-by-side in many cases, into the same office, SCIF, SOC, NOC or conference room to explain it face-to-face.  Sitting across the table from this partnered organizations top executive, you say it:

"I have carefully selected "Jill or Jack" to be our Liaison with your unit or department.  It is something we know to be of great value to the ongoing mission we both face, to address the (problem-set).

 Please know that she/he knows me very well and how I think and what our organizations real capabilities are.  We will miss them, yet want her/him to work alongside your leaders to learn as fast as possible about your greatest hurdles and problems.  It is only then, that we envision a chance for our respective teams to move faster with the most effective joint solutions, to obtain and synchronize our advantage." 

This few minutes face-to-face may make all the difference on the potential for a successful and trusted relationship.  As you stand up and leave your Liaison with their new assigned organization, remember this.

Your Liaison's ability to succeed, will only be as good as the job you have done in preparing them for the assignment.  Think about all the months or years you have worked to shape their character, to instill the ethics and integrity into their daily decisions.  How many problems did you let them solve on their own?

We look forward to hearing the stories about your "Liaison's" and their respective missions to achieve decision advantage and to reach those lofty outcomes you seek...

Trust Decisions: The Wealth of Our Cognitive and Digital Transactions...

As you embark on your journey out the door today, you will be required to make dozens of "Trust Decisions".  You and the digital smart machines and the numerous human and digital trust transactions that you will encounter is quite fundamental.  Or is it?

As you walk into your office building the surveillance cameras are watching you and recording your behavior.  The iPhone in your pocket is transmitting your unique signals to digital data sensors embedded in the lobby.  As you press the button on the elevator to go up to your office, you are making another affirmative decision to trust.

When you step off at your floor and approach the door to your office, you might utilize your small "Radio Frequency Identity (RFID) device to swipe a small square mounted on the wall.  You hear the deadbolt unlock and you are now granted access to your office space to start your workday.

Now as you approach your corner office, you glance at the top of the screen of your iPhone to see if you are connected automatically to the corporate wireless network and the VPN.  When you were granted access to the office, the corporate computer network knew you were now present in the office and you have been automatically granted access for your role on numerous software applications on your computing devices.

Start your day at work and now the number of digital trust encounters has just begun.  The "Trust Decisions" that you and your digital devices will be making, could reach into the hundreds after a long 8 hour day.  

Yet there are five principles that emerged in May of 2015 from Oxford professor and author Jeffrey Ritter in his book "Achieving Digital Trust" we should consider now:

• Every transaction creating wealth first requires an affirmative decision to trust.
• Building trust creates new wealth.
• Sustaining trust creates recurring wealth.
• Achieving trust superior to your competition achieves market dominance.
• Leadership rises (or falls) based on trust (or the absence of trust).

Think about a day in the life of your entire organization and the number of digital trust transactions that have nothing to do with actual monetary currency transfers.  The wealth that is being described here on first glance may be thought of in terms of dollars or yuan or property, yet what about the wealth of human trust?

 A plentiful amount or an abundance of anything.  How tangible is the decision to trust the computing machine before you, or the person sitting across the desk who is a key supplier or that new client half way around the world just sending you a text message?

You see, we walk to work and communicate everyday, making hundreds of trust decisions.  Our corporate computing devices are making tens of thousands or millions of transactions of trust each hour.  The rules, information and calculations are known, because they are being measured.  Jeffrey Ritter says it this way:

Take a moment and think about each of these with respect to what you do in your business or in your job. How does the organization acquire wealth? Where does new wealth originate? How are customers retained? What provokes them to keep coming back and paying for your goods or services? Why does the leader in your market succeed? If you are not the market leader, why not? How is the loyalty of your team maintained? 

 The future is clear and becoming more revealing to us each day.  Digital trust, security and privacy of your organization and our societies are being defined before us in plain sight.  Can you see it?

Making "Trust Decisions" today at work and as you navigate home for the evening will be more apparent.  A heightened understanding of digital trust and how you engage with these transactions each waking hour may assist you in creating new wealth.  Improving the trust you have with AI computing machines and others at home or work, can make all the difference in life.

Where do you work and live?  Washington, DC.  Denver.  London.  Dublin.  Zurich.  Sydney.  It doesn't matter anymore because we are all connected by the Internet.  The opportunity for the societies of our planet to utilize "Information & Communication Technology" (ICT) to produce greater wealth is still before us.

How will you proceed with your “Trust Decisions”?

Operational Risk: The Pursuit of Trusted Information...

Operational Risk is about Performance Management and Business Resilience. A few months ago the topic of "Compete or Die" was discussed here. Why revisit this topic?

CEO's and the Board of Directors realize the road to eliminating fear in their organization and the marketplace is through trusted information.

Being agile, ready and capable of a quick recovery is what competitiveness is all about, on the field, on stage or around the table in the Board Room.

Working towards control and protection while "Fear" builds in the back of your mind makes you stiff, depletes your energy and creates doubt. And when you are operating a business or standing on the tee of your first sudden death hole on any PGA weekend, you better have resilience.

The business equivalent to Homeland Security and Critical Infrastructure Protection is Operational Risk Management—a domain that many executives see as the most important emerging area of risk for their firms. Increasingly, failure to plan for Operational Resilience can have “bet the firm” results. 

There are numerous examples of how errors, omissions and glitches have brought down the reputations of many a Fortune 500 companies. What do they all have in common that led to their demise? A lack of economic and business resilience to remain competitive in the marketplace.

The threat of Tort Liability and the loss of reputation is top of mind these days with every major global company executive. The threat is real and increasing at a faster rate than many other real operational risks to the enterprise. Litigation from regulators, class actions and competitors has given the term Legal Risk new emphasis and meaning.

Once corporate management understands the need for a "resilience" mentality in place of a "protection" mental state, a new perspective is found. Investing in the vitality, agility and competitive capabilities of the organization sounds and is more positive.

It alleviates the fear of doom and gloom and inspires new found innovation. The future of your organizations longevity and in it's adaptability can be achieved with a new perspective. Compete or die.

Performance Management could be enabled or suppressed by the amount of power you give your leadership. Do they have the ability to make a $1M decision or $10K decisions when it comes to investing budgeted capital into their business unit growth?

Do they manage risk on a level where they are the most informed and the most knowledgeable about the business, or is the "Mother Ship" back at the home office dictating the way they spend or the way they invest?

The ability to know how to manage risk at the point of creating new information is the nexus of several disciplines and requires substantial training. Every minute that goes by with people not behaving correctly puts the enterprise at greater risk to lost performance opportunities.

All these issues can be summed up in a single concept: trusted information. Simply accessing data is no longer enough. Today's CEOs, CFOs and knowledge-workers must be able to reliably track the information they use for decisions back to the original source systems in order to ensure its timeliness, accuracy and credibility.

Over the last few decades, organizations have invested Billions of dollars in systems to collect, store and distribute information more effectively. Despite this, information users at all levels of the organization are often uncomfortable with the quality, reliability and transparency of the information they receive.

Today's organizations rarely have a "single view of the truth." Executives waste time in meetings debating whose figures are correct, rather than what to do about the company's issues.

Additionally, they worry about the AI consequences of making strategic decisions using the wrong information, directly impacting the long-term survival of the organization.

The search for trusted information is a continuous pursuit for commanders in the "Mission Ready Room" and the "Corporate Board Room".

So how do you achieve the level of assurance that's required to make the "bet the farm" risk management decisions in your enterprise?

Competition: Life Long Learning Experience…

When you were growing up in your town across the USA, they probably had all kinds of ways for you as a kid to learn about competition.

Was it the Spelling Bee?  The Debate team. The High School ball sports games, running track or swimming meets. Cheer competitions. Car racing. The neighborhood park “Art” & “Pottery” contest. The city Golf championship.

Before you headed out of your own household to universities or colleges in other states or joined up with our Armed Forces and were stationed overseas, you really thought you understood what competition was all about didn't you.

Or did you?

competition

com· pe· ti· tion ˌkäm-pə-ˈti-shən

Synonyms of competition

1: the act or process of competing

compete

com· pete kəm-ˈpēt

1: to strive consciously or unconsciously for an objective (such as position, profit, or a prize) : be in a state of rivalry

The fact that you were in competition with others for the best example of your intellect, or your strength or your speed or your accuracy or creativity would soon become more of a life question.

"Who shall I serve in my years ahead and trust to help me navigate the joys and sorrows of my life long journey?"

How will they provide me with the wisdom and the guidance to know what is the right decision to make at the right time?

Competition in life is unavoidable and you might wonder why some people “Win” on one day and not on another.  Was it luck?

Just ask anyone who has made it to a C-Suite at Headquarters, or “Hall of Fame” or other Museum of History and the people who excelled at their particular Profession, Sport or Craft or Exploration milestone.

Have you ever heard someone say in your long competitive life:  “It’s not about Winning and Losing it is about how you play the game”.

What does that really mean?  Is it about following the rules and playing with good manners or sportsmanship?

Competition is truly a life learning experience whether it played on the field, in the pool, on the mountain, on the ice rink, on the track, in the auditorium, on the stage, in the conference room or the ready room, face-to face or online, it does not really matter.

Some may say it was lots of Time and Practice.  Some may say it was a Miracle.

What shall you learn about Competition in your own life?

Some may say it was "My Destiny"...

Godspeed!

Intelligence Sharing: Responsibility to Provide...

Back in the summer of 2008, the "Need to Know" was now finally becoming extinct. Intelligence Communities around the globe began ever so slightly changing their behavior.

The Office of the Director of National Intelligence (ODNI) had released it's Information Sharing Strategy:

The Office of the Director of National Intelligence was announcing the first-ever strategy to improve the ability of intelligence professionals to share information, ultimately strengthening national security.

The "Responsibility to Provide" attitude combined with a "Rule-set" reset could get the entities moving the right direction. Risk Managers in institutions in the private sector have been grappling with this business issue for multiple decades.

The reality that the FBI, NSA, CIA and DHS are sharing more effectively will only be evident in actual behaviors, not technology.

The new mantra "Responsibility to Provide" would be repeated over and over but where is the evidence?  

The culture shift was predicated on the ability to manage risks associated with mission effectiveness and disclosure of sensitive information. A Trusted Environment.

This new information sharing model is not revolutionary and requires the same care with privacy, information security and civil liberties that we all expect when it comes to personal identifiable information.

Adding new incentives to share information or rewards for doing so will soon be the norm and the behavior changes will be evident. Great care will be given to the ability to protect sources and methods of collection.

Creating a "Single Information Environment" (SIE) will improve the ability for analysts and investigators to get access earlier and to discover what exists. Enhancing collaboration across the IC community would be a strategic goal and has been a dream for over twenty years.

So let's go back to the "Trust Model" for a minute:

• Governance: The environment influencing sharing.
• Policy: The "rules" for sharing.
• Technology: The "capability" to enable sharing.
• Culture: The "will" to share.
• Economics: The "value" of sharing.

A 500 day plan was then in place. The integration has now been reemphasized even today. Let's make sure that our vigilance continues and on this Martin Luther King Jr. weekend, our spirits are reenergized...

Linchpin: Trust in a Continuously Changing Environment...

In the early morning nautical twilight on a cold winter morning, thoughts about how the world is changing comes into clarity.  What do you believe in?

As the asymmetric threats seem to grow and our respective thoughts scan a vast Operational Risk landscape of people, processes, systems and external events; there is a mission worth pursuing.  It is a mission that is uncertain, full of unexpected change and potential catastrophes.

The outcomes that you seek will not always materialize as you wish, yet that is to be expected.  After all, what would an organization, state, region or country be like, without any substantial changes, unexpected events or new challenges?  You see, humans do not thrive in environments where behavior or events are 100% predictive.

We work best when there is a problem to solve, an environment or challenge that we can explore.  We can conquer or adapt to, in order to survive another day.  It is this ability to explore, to test, to solve problems that sets us apart from the current state of "Artificial Intelligence", for now.

Now, pivot your thoughts to the current ecosystem of people you encounter on a daily basis.  How does that environment change each day?  What mechanisms do you have in place to mitigate the risks that could create negative consequences and outcomes?  Think about all of the behaviors, tools and ways that you operate each day to deal with risks in your life.

The truth is, humans are curious and seek out risk.  Even if you get to a place where there is a perception that no risks are present, that no risks are over the horizon, we will look for new adventure, new learning and ways to adapt to a new environment.  So what really is the top priority for a parent, big brother/sister, manager, instructor, chief executive, commander or other organizational/constituent leader?

To create an environment of trust.  In a place where people have the ability to create the rules, teach the rules and operate within the rules.  Think about any environment where humans can't create the rules, or rely on the rules.  Where they are not effectively communicated or where people don't follow the rules.  Trust breaks down and uncertainty permeates our consciousness.  The decisions to trust become questionable.

Your goal, is to become a "Linchpin".  As Seth Godin has described in Linchpin:  Are you Indispensable?:

"Is there anyone in an organization who is absolutely irreplaceable?  Probably not.  But the most essential people are so difficult to replace, so risky to lose, and so valuable that they might as well be irreplaceable."

How many linchpins do you have on your team?  Guess what?  If everyone is so specialized, so vital and there is little or no backup and redundancy, you may have a single point of failure.  This is why as a linchpin, you need to be continuously training and teaching to be replaceable.  If you are not confident that you have done all you can do, to become replaced, then you as a linchpin have failed.  Your resilience factor is zero.

Your tasks will create more redundant linchpins and you shall create a consistent and highly trusted environment, physical or virtual.  A changing environment is inevitable.  Achieve a culture where trust is paramount and the team, class, cohort, company and community that creates the rules, communicates the rules, enforces the rules and follows the rules.

We as curious humans seek out unpredictable places, full of risk and simultaneously we wish the environment can be trusted?  Yes we do.

Onward!

Reliable: A Leadership Life Pursuit...

If you were asked about some of the greatest “Leaders” you have ever experienced in your lifetime so far, what is the most important “adjective” you shall use to describe them?

At an early age, perhaps they were teachers or coaches in your schools or sports teams  growing up.  They were always on-time and reinforcing several key attributes in life such as hard work, telling the truth or following the rules.

As you were just gaining experience in the work force in your mid-twenties, maybe you found bosses who focused on other key adjectives.

What about you?  Have you been described as reliable:

https://www.merriam-webster.com/dictionary/reliable

re· li· able ri-ˈlī-ə-bəl

Synonyms of reliable

1: suitable or fit to be relied on : DEPENDABLE.

2: giving the same result on successive trials

Moving through your mid-life as you gained more experience at work or in the armed forces, or/and maybe you got married and had kids…were you someone that close people could rely on?

Being reliable in our personal life and our career is vital, if you are ever going to become a sought after leader and a true professional.

• Do you ever find yourself running late for scheduled appointments or missing meetings or events all together?
• Do you make excuses for your own mistakes or losing important items?
• Do you have trouble getting along with other people and losing their trust?

Learning to become “Reliable” is perhaps one of the greatest leadership traits you can achieve in your life.

Think about it.

Do you make it onto the front page of “Sports Illustrated” for being unreliable?

Do you have trusted relationships with others on your team who you put your life in their hands from time to time?

Becoming a real leader in your life is not without making mistakes and disappointing others due to extra ordinary circumstances along the way.

"It has all to do with your consistency, your loyalty, your trustworthiness, your faith, your honesty, your devotion and your continuous solid character."

Maybe most of all, becoming reliable is being so capable of being trusted…

Future Risk: What is True...

On the dawn before the next large public gathering across the world, Operational Risk Management (ORM) professionals are on edge.  Readiness and contingencies are at their highest level in anticipation of any globally televised event.

The same crisis management environment exists four or more times a year within the confines of the Board Room and Executive suite.

Operating at the "Speed of Business" and effectively managing daily, weekly, and quarterly risk management tasks requires an adaptive and resilient culture.  A culture that has been born and evolved from its Genesis to a daily run rate based upon two main components.

• Trust is the first one and to many a given in any high performing environment.  To be able to trust the person to your left and to your right requires many tests.  It builds over time yet it must start with the right elements and be nurtured for it to flourish.

• The second component is far more complex.  It requires you to embark on a continuous discipline with yourself and the people to your left and right, to know "What is True."

"What is True" means one set of reality for you and perhaps something different for those around you.  Your mission is to get to a single version and reality of what is true faster than your competition, your adversary or your partner.  Survival will be a factor of your speed to understanding as a team, "What is True" and then your adaptive nature to the consequences of your actions.

Are you accountable for your outcomes?  Have you accepted the consequences of your behavior?  So what does all of this have to do with Operational Risk Management?  It has everything to do with it. The most high consequence event to any risk matrix, is the fact that people do not see themselves or others in a "True" perspective.  They are not operating in reality.

What is your willingness to bring current problems to everyone to dissect, understand and solve?  Those who continue to operate without a proactive problem-solving environment are headed towards disaster.  Surprises.  Being blind-sided.  Never saw it coming.

When you hear people saying these things.  You have someone who has not been proactive in the continuous identification of problems and communicating those problems to the team to be solved.

You see, leadership is about continuously testing, designing and improving the process or the product.  The thinkers and the doers, the blueprint and the construction, the designers and the operators must be in a synchronous harmony together.

Ask yourself; how is this movie unfolding compared to the script that was written?  How has the change and the rate of change had consequences?  What have I and my team done to adapt, by changing the design or the people to achieve the mission? 

The "Speed of Business" is the environment and the successful outcome we all seek and is captured in three words.  "What is True."

operational risk