The notion of extreme risk and the extreme events that might arise from these risks is a theme that runs through several of the natural and social sciences. Prominent examples include earthquake,  fires, floods or extreme stock market risks. Events such as these have the potential to cause catastrophic damage to human society. Therefore, an integrative understanding of the nature and origin of such risks is likely to provide substantial benefits in designing better and more efficient risk management systems to anticipate and cope with these risks and to develop resilience strategies.

The aim of this workshop is to understand the common themes that explain extreme risks in both natural and social sciences and that revolve around power laws.  This workshop examines alternative programs for reducing losses from natural disasters and providing funds for recovery following a catastrophe, particularly the role that the private and public sectors should play in mitigating future disaster losses and financing the recovery process.

What role can the public sector play in partnering with the private sector in general and the insurance sector in particular to lever its strengths (knowledge, network, financial capacity) in reducing the potential losses from future natural disasters and increasing the speed and efficiency of recovery from any large scale disaster?

What are the costs, benefits and tradeoffs associated with alternative risk mitigation strategies?

Sometimes extreme events arise from the most unexpected circumstances. This course explores the unlikely and maps the actions that an organization should have in place to control crises, and what you should review to give assurance that all reasonable steps are in place to control extreme events.

Who should attend?

The course is open to all.

What will I learn?

After completion you will be able to:

• Understand the nature of extreme events;
• Understand the triggers that can tip the balance towards unlikely events occurring; and
• Be able to undertake an audit of the plans and preparations your organization has in place for dealing with the unusual.

Course Outline

• Extreme events
• I’ve heard the term ‘Black Swan’ - what does it mean?
• How much harm have organizations experienced through unlikely events?
• Can my organisation be held accountable for unpredicted events?
• Do risk management brainstorming processes cover every aspect of risk?
• Auditing crisis management and extreme risk events
• Proportionality must come into play - we can’t plan for everything - surely it would be unaffordable?
• Triggers for extreme events - keeping risk assessments up to date
• Awareness of external facts and trends - risk indicators
• Understanding of third-party risks and impacts
• Domino effects - mapping them into your system - better risk registers
• Crises management plans - what do they look like and what can I review?
• Where should crises plans be kept?
• Staff training, user awareness - where and how are staff involved and what to review?
• Crisis response capability - what to review?
• Reducing the impact - what should we do and what do I review?
• Roles and responsibilities - what to review?
• Internal responses - what to review?
• External responses - what to review?
• Testing of crises management plans - what to review?
• Post crises - collection and analysis of data and actions taken - what to review?
• Reporting to the outside world - engaging with our customers - what to review?
• Reporting to the outside world - engaging with other bodies - what to review?
• Reporting criminal incidents to law enforcement - what to review?
• Learning from others - keeping up to date - what to review?