Martin Pergler shares an article that explores risk appetite and how to address it as we move into phase two of COVID-19.
Act I of COVID response has been about broad societal measures to stop the pandemic from overwhelming the health system, e.g. physical distancing, pausing the economy, cutting travel; all to slow exponential spread. While Act I isn’t over, it’s increasingly clear a long Act II, balancing reopening and personal freedoms with stubbornly continuing COVID risk, will follow. That’s before Act III, a full-fledged recovery (vaccine? antibody tests? herd immunity?…), can truly start.
For Act II, we need to start having clearer, more nuanced, and non-judgmental discussions about risk appetite. This is a concept from (institutional) risk management, specifying* how much of what type of risk an entity is prepared to take, and under what circumstances, including for what benefit. One of the challenges in risk management is reaching consensus on risk appetite, and reflecting that different individuals and groups in the entity may have different risk appetites. This risk appetite concept is also applicable to individual and societal risk-taking, though less often discussed explicitly. In any case, it’s going to be very important for COVID Act II, and we’re already seeing it rear its head, in ugly, unstructured, politicized fashion.
Key points covered include:
- Objectively different personal risk
- Different personal risk tolerance
- Lack of rationality
- Selfishness vs altruism
Read the full article, Getting serious on COVID risk appetite, on LinkedIn.
Umbrex is pleased to welcome T.G. Jayanth with Corvine Consulting to our community. T.G. Jayanth was a practice expert in the Capital Projects & Infrastructure (CP&I) practice of McKinsey for four years before leaving in Dec. 2019 to launch his consulting practice focused on helping clients get the best returns on their capital project investments. T.G.’s expertise covers the entire project life-cycle, from early project concept through development, risk management, preliminary and detailed engineering, procurement and contracting, construction, commissioning and handover to operations. He helps clients establish effective project management office (PMO)’s, build their project organizations, and raise their project performance to best-in-class levels of excellence.
Prior to McKinsey, T.G. had a 35+ year career in capital projects, with leadership roles with Owner, Contractor, and Supplier companies. As V-P of Capital Projects for SunCoke Energy, T.G. built a capital projects organization from the ground up implementing best-practices and leading and mentoring a team executing a portfolio of projects.
T.G. has extensive international project experience, including several years leading LNG projects in North Africa (Algeria). He speaks fluent French. T.G. has helped clients realize recurring savings of 15 – 30% on their annual capital spend, and believes he can do the same for any company regardless of industry that has an annual capital spend in the $200M – $3B range.
T.G. lives in the Houston, TX area but is willing to serve clients anywhere in the world.