Leadership for Risk Management: Navigating the Haze with Modern Techniques (Future of Business and Finance)

Foreword 7 Out of the Haze 7 Preface 8 Leadership for Risk Management 8 Management Talk 8 A Nautical Approach to Lockdown 9 Acknowledgments 10 About This Book 11 Contents 14 List of Figures 16 List of Table 17 1: Introduction 18 1.1 Usage 18 1.2 Discussion Questions and Reflection Questions 19 1.3 Management Deliberation 19 1.4 Structure of the Book 20 2: Three-Phase Model 21 2.1 Phase Model 21 2.2 Route Map 21 2.3 In Perspective 22 2.4 Three Phases Defined 23 2.4.1 Phase 1: Response Phase 23 2.4.1.1 Actions in Phase 1 24 2.4.2 Phase 2: Recovery Phase 25 2.4.2.1 Actions in Phase 2 25 2.4.3 Phase 3: Reconstruction Phase 27 2.4.3.1 Actions in Phase 3 27 2.5 Case 30 2.5.1 Leadership in The Netherlands During the Coronavirus Outbreak in 2020 30 References 31 3: Navigation Model 32 3.1 Beliefs and Principles 32 3.2 Working Method 33 3.3 Compass 34 3.4 Navigation Model 35 3.4.1 Five Starting Points 35 3.4.2 Four Dimensions 38 3.5 Actions 40 3.6 Business Cases 41 3.6.1 ASML and Tribes 41 References 42 4: Governance Model 43 4.1 Organization as Ecosystem 43 4.2 Network Structure 44 4.3 Agile Organization 45 4.4 Holocracy 46 4.5 Theoretical Concepts 48 4.6 Risks of Ecosystems 48 4.7 Above-Decks and Below-Decks 49 4.8 Work Methods for Risk Management 50 4.9 Business Cases 51 4.9.1 KLM 51 4.9.2 Illy 52 References 53 5: Management Model 54 5.1 Purpose-Driven Management 54 5.2 Shockproof 55 5.3 Management Statement 55 5.4 Management Matrix 57 5.5 4D-Management 59 5.5.1 Dream 59 5.5.2 Dance 60 5.5.3 Deliver 61 5.5.4 Destination 62 5.6 Business Case 64 5.6.1 Nestlé 64 References 64 6: Recommendations 65 6.1 Insights and Lessons from the Chapters 66 6.1.1 From Chap. 2: Three-Phase Model 66 6.1.1.1 Phase 1 66 6.1.1.2 Phase 2 66 6.1.1.3 Phase 3 66 6.1.2 From Chap. 3: Navigation Model 66 6.1.2.1 Insights 66 6.1.2.2 Management Lessons 67 6.1.3 From Chap. 4: Governance Model 67 6.1.3.1 Insights 67 6.1.3.2 Management Lessons 67 6.1.4 From Chap. 5: Management Matrix 68 6.1.4.1 Insights 68 6.1.4.2 Management Lessons 68 6.2 Ten Lessons to Lead for Risk Management 68 6.2.1 Risk Appetite 69 6.2.1.1 Lesson One 69 6.2.1.2 Discussion Question 69 6.2.2 Focus 69 6.2.2.1 Lesson Two 69 6.2.2.2 Discussion Question 69 6.2.3 Human Image 69 6.2.3.1 Lesson Three 69 6.2.3.2 Discussion Question 69 6.2.4 Way of Working 70 6.2.4.1 Lesson Four 70 6.2.4.2 Discussion Question 70 6.2.5 Culture 70 6.2.5.1 Lesson Five 70 6.2.5.2 Discussion Question 70 6.2.6 Dependence 71 6.2.6.1 Lesson Six 71 6.2.6.2 Discussion Question 71 6.2.7 Craftsmanship 71 6.2.7.1 Lesson Seven 71 6.2.7.2 Discussion Question 71 6.2.8 Growth 72 6.2.8.1 Lesson Eight 72 6.2.8.2 Discussion Question 72 6.2.9 Digital 73 6.2.9.1 Lesson Nine 73 6.2.9.2 Discussion Question 73 6.2.10 Too Big to Be Great 73 6.2.10.1 Lesson Ten 73 6.2.10.2 Discussion Question 73 Afterword 75 Appendix 76 The market is like the sea: it gives, and it takes away. That became apparent once again when the economy and society went into “lockdown” due to the coronavirus outbreak. Organizations will either sink or swim, and only the pros will be able to keep their heads above water. This is a self-help book for managers, supervisors and administrators who see themselves as skippers at the helm of an organization in times of turbulence, uncertainty and complexity. It provides a number of the latest handy management models, such as the Three-Phase Model, Governance Model and Management Matrix, which help leaders and managers arrive at well thought-out risk management decisions. In addition, the practical cases and discussion questions in each chapter help readers implement these models in their organizations. The book is an English translation of the Dutch book ‘Varen in de mist’, which was nominated for the Dutch Management Book of the Year.